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First auditor

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(Querist)
06 December 2013 Can the First Auditor be removed from his office before the expiry of his term WITHOUT the prior approval of CG..?
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
06 December 2013 As per companies Act,1956, the first auditor can be removed with out the approval of CG. Consequently, the new auditor can be appointed by the shareholders in a general meeting. Section 224(5) of the said act may be referred to.
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Ajay Mishra

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Ajay Mishra (Expert)
06 December 2013 Hi

If you will use the word "removal of auditor" then you will follow the provision of section 225 of the Companies Act. Board has no power to remove the auditor.


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).
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