14 September 2012
A Company wishes to appoint some other auditors in place of those rertiring at the AGM.
Please guide the procedure to be followed by the Company. Does the Company required to take NOC from the existing Auditors or it simple notify them that the Board has decided not to re-appoint them at AGM.
On receipt of notice under section 225(1) of the Act, for the removal of a retiring auditor the company shall send a copy of the notice to the retiring auditor forthwith. The Department's Circular No. 2/81, dated 17-10-1981 states that in order to appoint a person other than the retiring auditor or to provide that the retiring auditor shall not be re-appointed; a special notice has to be given proposing that such a resolution would be moved at the next annual general meeting. On receipt of the special notice, the company should send a copy thereof to the retiring auditor. It is advisable to send the same by registered post with acknowledgement due.
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