Procedure For Removal of Auditor Before Expiry of His Term

Procedure-removal-auditor-before-expiry-of-his-term



As per the provisions of Section 140(1) of Companies Act, 2013 The auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf in the prescribed manner, Provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard.



Procedure For Removal of Auditor Before Expiry of His Term

(a)   An application shall be made to Central Government for removal of auditor shall be made in Form ADT-2 and shall be accompanied with fees as provided under the Companies (Registration offices and Fees) Rules, 2014.
(b)   The application shall be made within thirty days of the resolution passed by the Board.
(c)   The Company shall hold the general meeting within sixty days of receipt of approval of the Central Government for passing the special resolution.
(d)   Intimate the stock exchange promptly in respect of proceedings of the meeting.
(e)   Intimate the auditor who was removed with a certified copy of the resolution passed along with a copy of the approval of Central Government.
(f)   File MGT-14 with the Registrar with requisite fee and relevant annexures within 30 days of passing special resolution.
(g)  Send a certified copy of the proceedings of general meeting and inform about the change in auditor of the company to stock exchanges where the company is listed.
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