Doubt on company law
This query is : Resolved
08 October 2011
Experts
Co. Act 1956 says that no special notice is required for the removal of Auditors before the expiry of their Term. But it says that Sec 225(2) & (3) must be complied with, according to which notice is required to be sent to the Auditors.
1. What is the difference b/w this special notice & notice referred in 225(2), (3) ?
2. Are there any situations under which SPECIAL Notice is required for the removal of Auditors ?
Co. Act 1956 says that no special notice is required for the removal of Auditors before the expiry of their Term. But it says that Sec 225(2) & (3) must be complied with, according to which notice is required to be sent to the Auditors.
1. What is the difference b/w this special notice & notice referred in 225(2), (3) ?
2. Are there any situations under which SPECIAL Notice is required for the removal of Auditors ?
10 October 2011
Section 225 applies to 2 cases;
1. for a resolution at an AGM appointing as auditor a person other than a retiring auditor
2. providing expressly that a retiring auditor shall not be re-appointed. in this case procedure specified in Sec 190 & also in sub-section (2) & (3) must be complied with.
If a new auditor is to be appointed in place of the retiring auditor at an AGM, the company must receive a special notice of the intended resolution and in turn give a notice thereof to its members. The company must give intimation to the retiring auditor of the intended resolution by sending a copy of the special notice received by it.
1. for a resolution at an AGM appointing as auditor a person other than a retiring auditor
2. providing expressly that a retiring auditor shall not be re-appointed. in this case procedure specified in Sec 190 & also in sub-section (2) & (3) must be complied with.
If a new auditor is to be appointed in place of the retiring auditor at an AGM, the company must receive a special notice of the intended resolution and in turn give a notice thereof to its members. The company must give intimation to the retiring auditor of the intended resolution by sending a copy of the special notice received by it.
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10 October 2011
sir
U said that "if new auditor is to be appointed in place of ...."
But in case of removal before expiry of term, we also appoint new auditor ? So ,does this mean that it is exeption that 225(2) & (3) does not apply in removal before expiry ?
U said that "if new auditor is to be appointed in place of ...."
But in case of removal before expiry of term, we also appoint new auditor ? So ,does this mean that it is exeption that 225(2) & (3) does not apply in removal before expiry ?
10 October 2011
No.
Besides, according to sub-section (4), sub-sections (2) & (3) shall apply to a resolution to remove the first auditor under 224(5) or to the removal of any auditor under 224(7), as they apply in relation to a resolution that a retiring auditor shall not be re-appointed.
Besides, according to sub-section (4), sub-sections (2) & (3) shall apply to a resolution to remove the first auditor under 224(5) or to the removal of any auditor under 224(7), as they apply in relation to a resolution that a retiring auditor shall not be re-appointed.
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