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Removal of statutory auditor

SREENATH P. (Company secretary) (208 Points)

23 September 2016

Is it possible to remove statutory Auditor who is appointed in the AGM held on July 2014 for Auditing accounts from 2014-15 onwards .He was not audited financials of 2014-15 and 2015-16.Now the Company wants to remove the Auditor.he is not ready to give resignation letter. Kindly provide a solution by considering Adoption of Accounts in the AGM for the F.Y .2014-15 and 2015-16. Thanks in advance

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10 Replies

(Guest)

to remove auditor before record expiry of his term uh need CG permission...1st

(Guest)

company can remove him in EGM and appoint one more auditor on the same EGM....

(Guest)

no need of his resignation letter... Directly he can be removed.... after obtaining CG permission

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 23 September 2016

Removal of auditor before expiry of term:
1) A board resolution is to be passed at a board meeting.
2) Within 30 days of passing a board resolution CG's approval is to be taken filing form ADT-2
3) A special resolution is to be passed at the general meeting of shareholders within 60 days. of receiving approval from C.G.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 23 September 2016

Opportunity of being heard should be given to auditor before taking any action.

SREENATH P. (Company secretary) (208 Points)
Replied 23 September 2016

But the Auditor didin't audit the finacials for the F.Y. 2014-2015 and 2015-16. So If we file form to RD for removal now, who will Audit the finacials for that F.Y..Exisitng Auditor is not ready to Audit is not ready to Audit for that F.years.if we appoint new Director now, if he is eligible to audit that previous year's financials?

So what will be provisons with respect to Adoptions of Accounts in the respective AGM of past finacials years(2014-15 and 2015-16)?

1 Like

Rahul Maheshwari (Company secretary in Practice) (32 Points)
Replied 23 September 2016

It's simple , if auditor not giving resignation remove them under section 140 of the cos act . Procedure is convene board meeting , pass special resolution in members meeting , then file mgt 14 within 30 days and then file adt 2 to get the central govt approval. Any problem msg me on my mail id rahul.maheshwari397 @ gmail.com