How can you remove Statutory Auditor (appointed in last Annual General Meeting) before the expiry o…
How can you remove Statutory Auditor (appointed in last Annual General Meeting) before the expiry of his term?
Removal before the expiry of a term
A special resolution & prior approval of Central Government is required to be obtained for removing an auditor from the office before the expiry of his term.
The application for Central Government approval for removal of auditors is to be made in Form ADT-2, within 30 days of the passing of the Board Resolution.
A general meeting (EGM) is required to be held by the company within 60 days of receipt of Central Government’s approval for the passing of Special Resolution.
The section also provides that, the auditor must be given a reasonable opportunity of being heard at the meeting.
