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aakash dalmia (Querist)

06 September 2016 Please answer the following. Ordinary resolution or Special resolution? 1) In case of removal of auditor "before his tenure" say before 2nd AGM? 2) In case of removal of an auditor "in the AGM" say in the 2nd AGM? 3) In case of removal of auditor in 6th AGM? In all above cases it is an individual auditor.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

07 September 2016 Removal of the auditor appointed under section 139 before the expiry of the term require passing of special resolution.

The appointment of auditors shall be made for a period of 5 year term subject to ratification at every AGM.
Removal of auditors before 5 year terms require passing of Special Resolution

aakash dalmia

aakash dalmia (Querist)

07 September 2016 It means if it is not ratified in AGM ..same auditor cannot continue and ratification is done by passing OR ..Am I correct??

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

08 September 2016 – If the ratification resolution fails at the AGM of company then this also tantamount to casual vacancy. As per section 139(8) any casual vacancy, shall be filled by the Board within 30 days. If the vacancy has arisen due to resignation of auditor then such appointment shall also be approved by the company at a general meeting convened within 3 months of the recommendation of the Board

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