change of auditor

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C.S. CHANDANI SARUPARIA (Querist)
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08 September 2010 What is the procedure for changing the auditor of company without getting resignation from him before the expiry of his term. Is any special notice is required for this and to whom it should be given. WHAT ARE THE PROVISIONS IN RESPECT OF SPECIAL NOPTCE. Can you plz forward me a specimen of special notice for change of auditor.
And what is the diffrence in case of a listed company.

SANJAY TALATI

SANJAY TALATI (Expert)
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09 September 2010 As per Sec. 224(1) of the Companies Act,1956 the tenure of the Auditor is from the date of the AGM in which he is appointed to the conclusion of the next AGM.

The Query is silent , as to whether the company intends to remove the auditors before the expiry of his term. If it is so, than the company needs to pass a resolution in the GM (not necessarily AGM), and previous approval of the CG ( Delegated to Regional Director) by making an application in e-form 24A.

In case, the new auditors is to be appointed in place of the retiring auditor, than a members of the company needs give a special notice expressing the intention of appointing the new auditor in place of the retiring auditor at least 14 days before the date of the AGM.

The company has to give individual notices to the members or by publishing the advt. in the news paper circulating in the place of the regd. office of the company at least 7 days in advance.

Also the notice is to be given to the retiring auditor as to the receipt of such notice preferably by regd. post Ack. due.

Rest of the procedure like the representation of the auditor etc. is like that of the removal of director.

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C.S. CHANDANI SARUPARIA

C.S. CHANDANI SARUPARIA (Querist)
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10 September 2010 What is the procedure for changing the auditor of company without getting resignation from him before the expiry of his term. Is any special notice is required for this and to whom it should be given. WHAT ARE THE PROVISIONS IN RESPECT OF SPECIAL NOPTCE. Can you plz forward me a specimen of special notice for change of auditor.
And what is the diffrence in case of a listed company

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