2. The resignation of directors will not cause the board of directors of the company to be lower than the quorum;
3. If the resignation of a director leads to the above situation, the resignation report will take effect after the next director or supervisor fills the vacancy caused by his resignation;
4. A director may resign before the expiration of his term of office;
5. When the resignation of directors takes effect or the term of office expires, all handover procedures shall be handled with the board of directors. Its duty of loyalty to the company and shareholders will not be automatically terminated after the expiration of its term of office, but it is still valid within a reasonable period stipulated in the articles of association.
Legal basis: Article 46 of the Company Law of People's Republic of China (PRC). The term of office of directors shall be stipulated in the articles of association, but each term shall not exceed three years. Upon expiration of the term of office, directors may be re-elected. Where a director fails to be re-elected in time upon the expiration of his term of office, or a director resigns during his term of office, resulting in a quorum of board members, the original director shall still perform his duties as a director in accordance with laws, administrative regulations and the Articles of Association before the re-elected director takes office.
Guidelines for Articles of Association of Listed Companies (revised in 2006)
Article 85 A director may resign before the expiration of his term of office. A director who resigns shall submit a written resignation report to the board of directors.
Article 86 If the number of directors in the company is lower than the legal minimum due to the resignation of a director, the resignation report of the director will take effect after the next director fills the vacancy caused by his resignation. The remaining board of directors shall convene an extraordinary general meeting of shareholders as soon as possible to elect directors to fill the vacancy caused by the resignation of directors. Before the general meeting of shareholders makes a resolution on the election of directors, the power to resign directors and remain on the board of directors should be reasonably restricted.