Removal of Auditor of a pvt ltd company before AGM

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Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Dear Sirs,

Kindly let me know the procedure for the Removal of Auditor of a pvt ltd company appointed in AGM before the next AGM.

Thanks,

Aditya Maheshwari

Aditya Maheshwari (Expert)

27 January 2011 CASUAL VACANCY [Section 224 (6)(a)]
A casual vacancy is a vacancy of a temporary nature that may occur during the currency of the year after the appointment is made by the company at its general meeting. The auditor appointed in a casual vacancy shall hold office till the conclusion of the next annual general meeting. If the casual vacancy arises, the remaining auditors, if any, will continue to act as the auditors of the company.

Where the casual vacancy arises due to death or disqualification, the Board of Directors may appoint another auditor. But where the casual vacancy is caused by resignation of an auditor, the Board cannot fill up the casual vacancy but the vacancy so caused by resignation, shall be filled by the company in general meeting.

RESIGNATION OF AUDITOR
An auditor may resign before his term of office expires by depositing a notice in writing to that effect at the company’s registered office. His resignation becomes effective on the date he lodges such notice or on such later date as may be specified in the notice.

RETIRING AUDITOR CANNOT BE REMOVED BY THE BOARD [Section 224(7)]
The Board of Directors of the Company has no power to remove an auditor appointed by the company in general meeting, i.e., the auditors can be removed only by the company in general meeting and prior approval from the Central Government is also necessary for such removal of the auditors.

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Dear Maheshwari Sir,

In the case of a Private Ltd. Company whether section 227(7) in respect of approval of CG would apply?

Also please let me know the applicability of sec. 510 regarding removal in the case of a pvt ltd co.

Kindly reply.
Thanks,

Aditya Maheshwari

Aditya Maheshwari (Expert)

27 January 2011 Yes 227(7) applies to all companies.And section 510 Provisions applicable to every voluntary winding up companies and not for removal of auditor.

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Thanks a lot....

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