Appontment of auditor

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 If auditor is appointed by special resolution then he can be removed by ordinary resolution?

Ajay Mishra

Ajay Mishra (Expert)
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06 July 2012 Hi

No, need of special resolution, you can pass through ordinary resolution.

The Board of directors of a company has no powers to remove an auditor appointed by the company in general meeting. Accordingly, the said auditor can be removed only by the company in general meeting after receiving the previous approval of the Central Government. Powers has been delegated to the Regional Director vide Notification No. GSR 288(E), dated 31-5-1991.

An auditor can be removed before expiry of his term only by the company in general meeting after obtaining the previous approval of the Central Government (Power has been delegated to the Regional
Director).

The company shall take further action as prescribed in section 225 and make an application to the concerned Regional Director in e-Form 24A as prescribed by the Notification No. GSR 56(E) dated 10thFeb., 2006 for his approval.

The application has to be filed for appointment within seven days of the annual general meeting and
for removal before general meeting.

Regards

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