Regarding Resignation by Auditor from Pvt. Ltd.

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This discussion clarifies the rules around an auditor resigning from a private limited company. According to Section 140(2) of the Companies Act, 2013, auditors must provide at least 30 days' written notice before resigning. Filing Form ADT-3 with the ROC within 30 days of the resignation date is also mandatory. Attempting to backdate a resignation letter to circumvent the notice period is not compliant and can result in penalties for both the auditor and the company.

Jaswinder singh

Jaswinder singh (Querist)
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28 October 2024 Respected Colleagues,
For FY 2023-24, ITR filed without tax audit but ROC filing still pending, now my ques is whether auditor can resign from company w.e.f today (28.10.2024) and file ADT 3 with resignation letter dated 15.10.2024. Is filing and resignation letter dated 15.10.2024 and file ADT 3 within one month is within compliance....Please guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 November 2024 An auditor can resign from their position by submitting a resignation letter. However, according to Section 140(2) of the Companies Act, 2013, the auditor is required to provide a written notice at least 30 days prior to the resignation date. In your case, if the resignation letter is dated 15.10.2024, it implies that the resignation should have been communicated at least by 14.09.2024 to comply with this requirement.
After resigning, the auditor must file Form ADT-3 with ROC within 30 days from the date of resignation. This means that if the resignation is effective from 28.10.2024, Form ADT-3 should be filed by 27.11.2024. The form must include details about the resignation and reasons for it, along with a copy of the resignation letter.
If you plan to submit the resignation letter dated 15.10.2024, while actually resigning on 28.10.2024, this would not align with the requirement to notify at least 30 days in advance. Therefore, this approach would not be compliant with Section 140 of the Companies Act. Failing to adhere to these requirements can lead to penalties for both the auditor and the company involved, including fines that can escalate based on the duration of non-compliance.

Jaswinder singh

Jaswinder singh (Querist)
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23 November 2024 Got It Thanku sir......................

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 November 2024 You are welcome.

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