Removal and Resignation of Auditor

Removal and Resignation of Auditor

Removal of Auditor [Sec.140 (1)]

·           An auditor can be removed before the expiry of the term by obtaining the prior approval of the Central Government by filling an application.

·           The Company shall hold the general meeting within 60 days of receipt of approval of the Central Government for passing the special resolution.

·           The auditor concerned shall be given a reasonable opportunity of being heard.

Resignation of Auditor [Sec.140 & (3)]

·           The auditor who has resigned from the Company shall file a statement in the prescribed form stating the reasons for his resignation to the Comptroller and Auditor General of India in case of a Government Company and to the Registrar of Companies in case of Non-Government Companies.

·           While filing the statement, reasons for resignation and other facts as may be relevant with regard to his resignation shall also be indicated.

·           In case of non-compliance, he shall be punishable with fine ranging from ₹.50,000 to ₹.5,00,000.