26 December 2014
Both Failure of Ratification and removal are two different thing.
As per explanation to rule 3 of Companies (Audit and Auditors) Rules, 2014 it is clarified that, if the appointment is not ratified by the members of the company, the Board of Directors shall appoint another individual or firm as its auditor or auditors
Whereas Removal of Auditor is governed by Section 140 (1) and Rule 7 of Companies (Audit and Auditors) Rules 2014 and required Obtaining the prior approval of the Central Government.
27 December 2014
The said explanation mentions after following the procedure laid down in this behalf under the act. The only procedure laid down in the act is removal of auditor. If we consider otherwise, members can appoint an auditor for one year and board can appoint another for next four years
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