Auditor disqualification

If the auditor is disqualified, how he was appointed as auditor?  If he incurred the disqualification after he was appointed as auditor, he vacates the office  immediately and there is casual vacancy u/s 141(4) which can be filled by the Board u/s 139(8)(i).

Agrawal sir,

if can also comment if the outgoing Auditor needs to file ADT 3 as the same is not a resignation.?

thank you

1) Appointment of auditors is always an ordinary business and not special business.  [Ref. Sec.102(2)(a)(iv)].

2) Appointment of auditor requires ordinary resolution in following cases:

a) Appointment at AGM for 5 years [Sec.139(1) & Rule 3(7)]

b) Appointment of first auditors by EGM if the Board fails to appoint [Sec.139(6)]

c) Appointment of auditor to fill casual vacancy due to rsignation [Sec.139(8)]

d) Appointment of a retiring auditor as auditor. [Sec.140(4)].

3) Appointment of auditor other than retiring auditor or resolution that the retiring auditor shall not be reappointed requires special resolution. [Sec.139(9)(c)].

4) In the given case ordinary resolution is required for appointment of auditor in AGM of a person who was appointed by the  Board to  filll casual vacancy.

5) The given case is not a case of resignation and hence ADT.3 is not required to be filed.

thank you Agrawal sir. this is going to help me a lot.

Cheers