If a Statutory Auditor has shown his unwillingness for re-appointment as the Statutory Auditor of the Company for the coming Financial Year at teh ensuing Annual General Meeting, do he need to file Form ADT - 3 for resignation form the post of Statutory Auditor of the Company???
Kindly advise....
Sec. 139(1) read with rule 3(7) provides that the auditor appointed for a term shall be subject to ratification in every annual general meeting till the sixth such meeting by way of passing of an ordinary resolution. From the above, it is clear that in the ensuing AGM, the members shall not rarify the unwilling auditors on the strength of the letter of auditor expressing his unwillingness to continue as auditors and appoint new auditors
Sec. 140(2) read with Rule 8, mandates same for the resignation/removal of auditor before expiry of the term of Audtitor. Hence, it does not require to file ADT-3.
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