can first auditor removed by board of dirctor at statutory meeting.........
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When first auditor remove
Replies (7)
No Rajeev, at AGM first auditors can be removed only by passing ordinary resolution, board of directors has no power to remove the auditors (whether first of subsequent) at AGM.
Company can remove First Auditor in GM not in any other case..
Agree with
Rachit gupta
| Originally posted by : rajeev kumar, bcom ca-final | ||
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can first auditor removed by board of dirctor at statutory meeting......... |
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no
first auditor is appointed by board of director in, therefore only bod can remove first auditor by passing board resolution in board meeting.
you can refer to sec 224(5) of companies act 1956.
Dear pradeep
In section 224(5), it is clearly mentioned that for removal of first auditor ordinary resolution must to passed. Moreover, ordinary resolution is passed only by the shareholders in a general meeting.
So In my opinion board has no power to remove the auditors(whether first auditor or subsequent auditor)
Although u/s 224(5), First Auditors are appointed by the Board but the authority to remove the First Auditors (before the first AGM) rests with the COMPANY by passing an ordinary resolution at a general meeting.
can b removed by shareholders in GM (AGM or EGM)
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