removal of auditor

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uday bakliwal (Querist)

04 June 2009 sir i have re-appointed stautory auditor of pvt ltd company in the Agm to hold the office till next Agm ie for the account year 2008-09 & the same is intimated to Registrar of companies by company & myself . Now the company(Directors those are only members) want to remove me in between without any reason & appoint somebody else to carry out audit for 2008-09 . sir can they do it? whats the procedure ? any remedy for me ? please answer query by sending email to me udaybakliwal@rediffmail.com
thanking you

Ankur Garg

Ankur Garg (Expert)

04 June 2009 Hi Uday,

If they are removing you before the expiry of your term then in that case they have to follow section 224(7) and obtain prior Central Govt. approval for your removal.

In such kind of removal procedure u/s 225(2) & (3) is applicable.

Your Rights would be as follow:

1. Right to be heard orally at the meeting.
2. Right to make representation in writing to the company
3. Right to get your representation circulated among the members.

Best Regards

Ankur Garg

Ankur Garg (Expert)

04 June 2009 For more details go through the Section 224(7) and Section 225.

Regards

Radheyshyam Falod

Radheyshyam Falod (Expert)

09 June 2009 Yes they will have to take prior permission of the central government if an auditor is being removed and if the auditor has not given a resignation letter

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