Removal of an auditor of a private company

This query is : Resolved

nikhil (Querist)
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20 December 2011 I wanted to know the procedure for removal of the auditor of a private company.

The Auditor was appointed and latter the company wanted to remove him during the term of his office.

What will be the procedure for this removal and is the provisions of taking prior approval of central Govt.applies in this case

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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20 December 2011 Procedure to remove the auditor

1. Hold Board meeting & pass following resolution
a. To remove the Auditor giving reason thereof;
b. To convene an EGM and fix date, time & place thereof;
c. To approve draft notice of EGM & Explanatory statement & to authorize CS or director to issue the notice;
d. To authorize CS or director to make an application to Regional Director in e-Form 24A.

2. Application to Regional Director in e-Form 24A must be accompanied by i)Certified True Copy of Board Resolution ii) copy of special notice u/s 224(7)& iii) Copy of representation, if any, made by the statutory auditors

3. Give intimation to Auditor about his removal

4. Hold EGM & pass ordinary resolution.

5. Hold Board meeting to appoint auditors in casual vacancy.

CA Pabbaraju Laxmi Narasimha

CA Pabbaraju Laxmi Narasimha (Expert)
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20 December 2011 provisions for this context doesmot differentiate the private company and public company. provisions are same as applicable to the public company.

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