Removal of auditor by passing special resolution (139)(9)(c)

This query is : Resolved

Jainendra Kumar Singh (Querist)
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27 June 2016 Dear Friend

Please tell me wheather a audiror can be removed from as statutory auditror by passing special resolution u/s 139(9)(c). please do tell me wheather this resolution ca be filled in the AGM or the company can conveyanced extra-ordinay general meeting for this purpose.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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27 June 2016 The auditor appointed under section 139 may be removed from his office before the expiry of the term only by –
(i) Obtaining the prior approval of the Central Government by filling an application in form ADT-2 within 30 days of
resolution passed by the Board
(ii) The company shall hold the general meeting within sixty days of receipt of approval of the Central Government for
passing the special resolution.
(iii) The auditor concerned shall be given a reasonable opportunity of being heard.
(Section 140(1) and Rule 7 of the Companies (Audit and Auditors) Rules, 2014.

Jatin Bajaj

Jatin Bajaj (Expert)
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27 June 2016 according to section 140(1), read with rule 7 of Auditors rule, following is procedure of removal of auditor :
application shall be made to CG for removal of auditor before expiry period in form ADT 2
APPLICATION SHALL BE MADE WITHIN 30 DAYS OF RESOLUTION PASSED BY BOARD
COMPANY SHALL HOLD EGM WITHIN 60 DAYS OF RECEIPT OF APPROVAL FROM CENTRAL GOVERNMENT FOR PASSING SPECIAL RESOLUTION
INTIMATE THE AUDITOR WHO WAS REMOVED WITH A CERTIFIED COPY OF RESOLUTION PASSED ALONG WITH COPY OF APPROVAL OF CG
FILE MGT 14 WITHIN 30 DAYS OF PASSING SR

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