Resignation of auditor due to resignation compliance
This query is : Resolved
04 April 2015
Sir Plz let me know the complete procedure related to following query:
An auditor who has filed form 23b for FY 2013-14 during 2012-13 agm has resigned w.e.f 31.07.2014 before agm for the year 2014 denying for signing Balance Sheet for FY 2013-14 due to his preoccupation in other assignments and a new auditor is to be appointed in his place for signing bs and statutory audit. Whether Adt-1 is to be filed for his apptt. or form 23b for FY 2013-14 and provide guidance regarding all other roc compliances and e-forms as on date. Its urgent sir. Plz help.
Thanks in advance sir.
Jaggi
An auditor who has filed form 23b for FY 2013-14 during 2012-13 agm has resigned w.e.f 31.07.2014 before agm for the year 2014 denying for signing Balance Sheet for FY 2013-14 due to his preoccupation in other assignments and a new auditor is to be appointed in his place for signing bs and statutory audit. Whether Adt-1 is to be filed for his apptt. or form 23b for FY 2013-14 and provide guidance regarding all other roc compliances and e-forms as on date. Its urgent sir. Plz help.
Thanks in advance sir.
Jaggi
04 April 2015
Whether DIR-2 consent is to be attached mandatorily alongwith DIR12 and furthermore address proof & pan is also required in case of Apptt or change in designation of a director in a company?
21 July 2025
Here’s the detailed guidance for your query on resignation of auditor before AGM and related ROC compliance:
Scenario:
Auditor filed Form 23B (intimation of appointment) for FY 2013-14 during the AGM of 2012-13.
Auditor resigns effective 31.07.2014, before the AGM for FY 2013-14.
Auditor refuses to sign the Balance Sheet for FY 2013-14 due to preoccupation.
A new auditor is to be appointed in his place.
1. Procedure for Resignation
The resigning auditor must file Form ADT-3 (Notice of Resignation) with the ROC within 30 days of resignation.
The company should convene a Board Meeting within 30 days of the resignation to take note and appoint a new auditor to fill the casual vacancy.
The company should file Form ADT-1 for appointment of the new auditor within 15 days of the Board meeting.
2. Appointment of New Auditor
Since the resignation happened before the AGM, the new auditor will be appointed by the Board in a Board Meeting to fill the casual vacancy.
This appointment must be approved by the members in the next AGM.
If the company decides to appoint the new auditor in the AGM itself (instead of by Board), the new auditor’s appointment will be through members’ approval and the company will file Form 23B.
3. Which Form to File?
Since the Board appoints the auditor in the casual vacancy, file ADT-1 for the new auditor appointment.
The earlier Form 23B filed relates to previous auditor appointment in AGM.
For the new auditor appointed by the Board, ADT-1 is mandatory, and Form 23B will be filed after members’ approval in the next AGM.
4. Other ROC Compliances
Ensure Form ADT-3 is filed by the resigning auditor.
Company to file ADT-1 for appointment of new auditor.
File the Annual Return and Financial Statements (including the new auditor’s signature) as per due dates.
In case of delay or non-filing, ensure timely payment of additional fees to avoid penalties.
5. Regarding DIR-2 Consent and Documentation for Directors
For appointment or change in designation of director:
DIR-2 (Consent to act as Director) is mandatory and must be attached with Form DIR-12.
Proof of address and PAN copy of the director are also required.
These documents ensure ROC compliance and proper KYC.
Scenario:
Auditor filed Form 23B (intimation of appointment) for FY 2013-14 during the AGM of 2012-13.
Auditor resigns effective 31.07.2014, before the AGM for FY 2013-14.
Auditor refuses to sign the Balance Sheet for FY 2013-14 due to preoccupation.
A new auditor is to be appointed in his place.
1. Procedure for Resignation
The resigning auditor must file Form ADT-3 (Notice of Resignation) with the ROC within 30 days of resignation.
The company should convene a Board Meeting within 30 days of the resignation to take note and appoint a new auditor to fill the casual vacancy.
The company should file Form ADT-1 for appointment of the new auditor within 15 days of the Board meeting.
2. Appointment of New Auditor
Since the resignation happened before the AGM, the new auditor will be appointed by the Board in a Board Meeting to fill the casual vacancy.
This appointment must be approved by the members in the next AGM.
If the company decides to appoint the new auditor in the AGM itself (instead of by Board), the new auditor’s appointment will be through members’ approval and the company will file Form 23B.
3. Which Form to File?
Since the Board appoints the auditor in the casual vacancy, file ADT-1 for the new auditor appointment.
The earlier Form 23B filed relates to previous auditor appointment in AGM.
For the new auditor appointed by the Board, ADT-1 is mandatory, and Form 23B will be filed after members’ approval in the next AGM.
4. Other ROC Compliances
Ensure Form ADT-3 is filed by the resigning auditor.
Company to file ADT-1 for appointment of new auditor.
File the Annual Return and Financial Statements (including the new auditor’s signature) as per due dates.
In case of delay or non-filing, ensure timely payment of additional fees to avoid penalties.
5. Regarding DIR-2 Consent and Documentation for Directors
For appointment or change in designation of director:
DIR-2 (Consent to act as Director) is mandatory and must be attached with Form DIR-12.
Proof of address and PAN copy of the director are also required.
These documents ensure ROC compliance and proper KYC.
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