Prashant Bothra (Senior Manager) (24 Points)
26 April 2016Hello, Greetings from Chennai! We are a private limited company with 2 branches - one in Chennai and one in Ludhiana. The accounts get audited by separate auditors at both the places and the statements of account are merged together to form one set of financial statements. Now, we want to change our Ludhiana auditor - the new FY has just begun - how do we carry out the same? There are two Managing Directors in the company - can one director alone remove the auditor or does it need both consent?
Milind M. Kulkarni
(Practicing CA)
(580 Points)
Replied 09 May 2016
Removal of auditors is the right of shareholders and not directors. As per Section 140 of the Companies Act 2013, a company has to pass a special resolution in a general meeting after obtaining Central Government's approval to remove auditors. However, please check this in the light of amendments made by Companies Amendment Act, 2016 whether central government approval is still required and any other conditions have been stipulated.
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