Sec 140(4)

why does company needs to pass a special resolution to not reappointment the auditor because a retiring auditor cannot be reappointed bcz he has to go on a compulsory cooling period of 5yrs after retirement?
Replies (3)
Quick Summary
This discussion clarifies the need for a special resolution when a company chooses not to reappoint a retiring auditor, particularly due to mandatory cooling-off periods. It addresses the scenario where an AGM is adjourned, leading to the deemed continuation of the retiring auditor. The core point is that removing an auditor before their term ends requires a special resolution and Central Government approval, and appointing a new auditor instead of the retiring one necessitates special notice.

In case of AGM is not held and it is adjourned retiring auditor deemed to be the continue that's why
In my view no resolution required to pass.

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 and

Special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor.

 

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