A member of the board is considered a senior member of the company, providing guidance and direction to the chief executive officer, the president, and the chief operating officer. Board members perform a variety of duties and participate on various committees overseeing compensation, legal, benefits, operations, and much more.
Compensation for board members varies a great deal from voluntary to expenses and per diems for attending board meetings. It is considered a prestigious position and valuable in terms of the connections and networking that are possible through the board members. Failing to resign professionally negates all of the goodwill you may have built up, and you do a disservice to the board and the company. Finding other board memberships may be challenging should you have a negative reputation.
What Is a Board Resignation Letter?
A board resignation letter is a document sent to the board or the chairman of the board giving the individual’s intention to resign from the board. Circumstances will dictate whether the resignation is planned for several weeks, months, or immediate dismissal from the board.
Sending a letter of resignation to the board allows you to specify the reasons you are leaving the board and helps the board prepare for your departure.
The letter should be formal and clear, providing a specified date for the resignation. The board member should take into account any incomplete duties when suggesting a date for resignation. On occasion, the board may not accept the proposed date until these duties have been completed.
Why it’s Important?
- There are several reasons why it is important to resign from the board professionally, both in person and formally in writing:
- Your letter contains the details of your departure and prepares the board for your absence
- Board members will have questions about the reasons for leaving, which can be addressed in the letter
- Ensure that the letter coincides with the delivery of the verbal resignation to the board to avoid confusion
- A formal written letter ensures that your date of departure fits with your plan
- A copy of the resignation letter to all members of the board is considered good etiquette, and each letter should be signed individually
- If you do not provide notice to the board and the organization, you are doing them a disservice
- It is considered a professional courtesy and allows for your departure in a graceful manner.
How to Resign from a Board
Resigning from any job is never easy, and resigning from one at a senior level can have significant impacts on both the organization as well as your reputation if it is not done with grace and professionalism.
In most situations, it is a good idea to have a personal discussion with the principals of the company. This often includes the chairperson of the board, the CEO, or the founders. You are providing them with advance warning and providing them an opportunity to prepare a plan for your replacement.
Many board members planning to resign will request time at an appropriate meeting to address the board and offer their resignation. It is considered a professional courtesy to offer your resignation in this manner and allows the chairperson to address the board as well. The chairperson can offer their thanks on behalf of the board and the company for your services. They can also discuss plans for your replacement at that time if appropriate.
How to Write
This is a professional letter being sent to members of the board and often to senior management. Use the company’s standard format for letters. While it may seem like a small detail, managers within the organization and at the board level have an expectation of how letters should be prepared. You may request a template from the CEO’s assistant or the Chairman’s assistant.
Include your name and address, the date the letter is being sent, and the name and address of the person you are sending the letter to, along with the title of the person. Include a greeting.
The body of the letter should express your plan to resign from the board and the date that the resignation will be effective. Indicate in brief detail why you are resigning and whether you are available in the future to return to the position. In addition, express your appreciation for the opportunity to serve on the board and offer best wishes for the future for the board and the company.
You can also express your interest in assisting in another capacity and to complete any projects or committees that you were participating in, provided that you have the time to make this commitment.
Close the letter, print your name and sign the letter. If you are sending copies to all board members, you should indicate this under your printed name, .e.g. CC Board of Directors
Sample #1 Board Resignation Letter
(Your Name)
(Title, Company or Institution)
(Full address and)
(Email)
(Phone number)
(Date)
(Name of Chairman of the Board)
(Title)
(Company or Institution)
(Full address, and)
(Email)
(Phone number)
Dear (Name)
Regretfully I am writing to advise you of my intention to resign from my position on (Board of directors) of the (Company Name) effective (date).
My personal and professional commitments require that I devote more time to these endeavors, and I am unable to fulfill the requirements of a member of the board.
It has been my pleasure to participating and supporting the (company) at the board level. We have accomplished a great deal during my time on the board, and I am sure that these successes will continue in the future.
I am available to provide support to the board on a part-time basis until my vacant position has been filled.
Sincerely
(Signature)
(Printed Name)
(CC Board of Directors) {Optional}
Sample #2 Board Resignation Letter
(Your Name)
(Title, Company or Institution)
(Full address and)
(Email)
(Phone number)
(Date)
(Name of Chairman of the Board)
(Title)
(Company or Institution)
(Full address, and)
(Email)
(Phone number)
Dear (Name)
I am writing to inform you of my intention to resign as a Board member of (Name of Company)., effective (Date).
I have seen much growth in the company during my tenure on the board, and I am truly satisfied with the progress the company has made. I feel that the company and the board need new ideas and experience. I believe it would be beneficial to the company if I were to step down from the board at this time.
I plan to spend more time with my family and focus on building my business endeavors.
Thank you for the opportunity to participate with a strong and dedicated team at the board level and with senior management. I look forward to hearing of the continued success of (company name or organization name)
Sincerely
(Signature)
(Printed Name)
CC Board of Directors (Optional)
Board Resignation Letter (Word Template)
Tips for Resigning from a Board
Readers may find the following tips useful while preparing, delivering, and discussing a resignation from the board.
- Above all, be professional and resign in the same way you would resign in any other organization.
- Board members who are planning to resign usually have an informal discussion with the chairperson of the board to avoid surprises and allow time to plan replacements. The letter is the official document declaring your departure.
- Use a business letter format or email format and include your contact information and signature
- Provide an end date with as much notice as possible. Check the company’s bylaws for notice requirements.
- Offer a brief explanation of why you are leaving without providing too much detail. A family emergency, a new job, or a new position may create a conflict with the objectives of the company or board.
- Thank the board and the chairman for the experience, keep it positive and extend your best wishes for the company. You never know when you will be part of another organization with these same people in various positions.
- Make an offer to assist, if you have the time, the board to finish any projects you are currently involved with.
- Before sending the letter resigning from the board, proofread it several times and edit it appropriately. Have a 3rd party review it before you send it off.
Key-points
There are many reasons for members of the board to resign. They can include time commitments to other personal and professional challenges, conflicts of interest, a change in direction for the board, even disagreements about how the company should be guided. Regardless of the reasons for leaving, always keep your letter of resignation professional, complimentary and gracious. You may be asked to participate on other boards. Most board members have a wide network of contacts and influence.
Offer to assist until a new member can be found; however, only do this if you have the time to commit and you are not in a conflict of interest situation. You may make the resignation effective immediately if there is a conflict of interest or your commitments are such that you cannot assist the board in the interim.
Before sending your letter of resignation to the board of directors, it is considered a professional courtesy to discuss your resignation with the chairperson of the board and with selected senior management such as the CEO or the founder of the company or organization.
