Non ratification of auditor

If individual auditor or Ca firm is not ratified in AGM, will it be termed as removal of auditor.
Student CA Final

Auditor before its tenure can't be removed without permission of cg
Chartered Accountant

As per Section 140.(1) The auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf in the prescribed manner.

Provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard.

As the Section 139 exclusively give the power to shareholders for ratification of continuance of auditor so in case shareholders are not contented with the auditor they can pass resolution for non-ratification of auditor and such auditor shall dis- continue as auditor of the Company.



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