ROAD TRANSPORT CORPORATIONSCentral

Section 7 of The Road Transport Corporations Act, 1950

Resignation of office by the Chairman or a Director.

7. Resignation of office by the Chairman or a 1[Director].--The Chairman or any other 1[Director] of a Corporation may resign his office by giving notice in writing to the State Government and, on such resignation being accepted by that Government, shall be deemed to have vacated his office.

Summary

This section outlines the process for a Chairman or Director to quit their position.
The person resigning must provide a notice in writing to the State Government.
A resignation does not happen instantly upon sending the letter.
The office is officially considered vacant only after the State Government accepts the resignation.

Practical examples

1Mr. Kumar has served as Chairman for two years but wants to retire. On June 1st, 2025, he writes a formal letter to the State Government stating his intent to resign. He remains the Chairman until the government sends a response on June 15th accepting it.

2A Director named Mrs. Singh decides to move to another country for a new job. She sends her resignation notice to the State Government. Under Section 7, she must wait for the government's official acceptance before her seat on the Board is legally empty.

FAQ

1. Who must a Director notify to resign under Section 7 of the Road Transport Corporations Act, 1950?

Under Section 7 of the Road Transport Corporations Act, 1950, a Director must give their notice of resignation in writing to the State Government.

2. When is a resignation considered final under Section 7 of the Road Transport Corporations Act, 1950?

A resignation is final under Section 7 of the Road Transport Corporations Act, 1950, once the State Government accepts it, at which point the office is deemed vacated.

3. Can a Chairman resign verbally under Section 7 of the Road Transport Corporations Act, 1950?

No, Section 7 of the Road Transport Corporations Act, 1950, requires that the notice of resignation must be in writing.

Test yourself

1.Under Section 7 of the Road Transport Corporations Act, 1950, what is the first step a Chairman must take to resign?

2.According to Section 7 of the Road Transport Corporations Act, 1950, when does a Director officially leave their post?

3.Is there a requirement for a notice period length for a voluntary resignation under Section 7 of the Road Transport Corporations Act, 1950?

4.Under Section 7 of the Road Transport Corporations Act, 1950, who has the authority to accept a Director's resignation?

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