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Auditor

ANUJ GUPTA (15 Points)

29 March 2018

plz anyone tell the differnce btw sec 140(1) & 140(4) of companies act relating to removal of auditor

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Badal Kumar (19 Points)
Replied 29 March 2018

In section 140(1), an auditor may be removed before expiry of his term
but in section 140(4), member(s) shall a notice in which (a) A resolution at an AGM appointing as auditor a person other than retiring auditor.
or
(b) A resolution providing expressly that retiring auditor shall not be reappointed

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Parminder Singh (744 Points)
Replied 30 March 2018

140(1)= Removal before expiry
140(4)= Decision not to reappoint retiring auditor upon expiry of his term except by reason of 139(1).

Rahul Prajapati (Student) (2282 Points)
Replied 30 March 2018

140(1) is for Removal of Auditor before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government.

140(4) is for appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed.