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According to Section 140 of the Companies Act, 2013, an auditor (Mr. X) 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:
- An application to the Central Government for removal of...
Wazzeer Professional Network
ProfessionalMy company appointed an auditor who later resigned stating his bad health. We filled up the vacancy soon after by appointment of Mr. X as auditor till the conclusion of the next AGM. Now, we want to remove him but his term as not expired yet. How can it be done and what is the process?
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Wazzeer Professional Network
ProfessionalAccording to Section 140 of the Companies Act, 2013, an auditor (Mr. X) 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:
- An application to the Central Government for removal of the auditor shall make in Form ADT-2 and shall be accompanied with fees as provided for this purpose under the Companies (Registration Offices and Fees) Rules, 2014
- The application shall be made to the Central Government within 30 days of the resolution passed by the Board.
- The company shall hold the general meeting within 60 days of receipt of approval of the Central Government for passing the special resolution.
Make sure that before taking any such action, you must give Mr. X a reasonable opportunity of being heard, otherwise he will get a genuine reason to contest his removal.
over 3 years ago
View answer
My company appointed an auditor who later resigned stating his bad health. We filled up the vacancy soon after by appointment of Mr. X as auditor till the conclusion of the next AGM. Now, we want to remove him but his term as not expired yet. How can it be done and what is the process?
-
Wazzeer Professional Network
ProfessionalAccording to Section 140 of the Companies Act, 2013, an auditor (Mr. X) 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:
- An application to the Central Government for removal of the auditor shall make in Form ADT-2 and shall be accompanied with fees as provided for this purpose under the Companies (Registration Offices and Fees) Rules, 2014
- The application shall be made to the Central Government within 30 days of the resolution passed by the Board.
- The company shall hold the general meeting within 60 days of receipt of approval of the Central Government for passing the special resolution.
Make sure that before taking any such action, you must give Mr. X a reasonable opportunity of being heard, otherwise he will get a genuine reason to contest his removal.
over 3 years ago
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