14 November 2018
Dear Sir/ Mam, Ex-Auditor creating an issue in resigning ( Resign before the expiry of period ) as we already get his resignation on his letter head after and settled his dues but he is not signing ADT-3 form. We have to appoint a new one. He( new auditor) says that he need SRN generated on submission of ADT-3only then he add as a Auditor on ROC site. Please suggest me any way to appoint new auditor.
15 November 2018
Filing ADT-3 is a responsibility of Resigning Auditor. If he is not filing ADT-3 then he has to face the penal consequences. If you have resignation letter of resigning auditor, then you may appoint new auditor by filing ADT-1 and can also attach resignation letter of previous auditor.
21 July 2024
When dealing with the situation where the ex-auditor is refusing to sign the ADT-3 form after resigning, you have a few options to proceed with appointing a new auditor and ensuring compliance with ROC (Registrar of Companies) requirements:
### Steps to Appoint New Auditor:
1. **Resolving Issues with Ex-Auditor**: - **Communicate Clearly**: Engage with the ex-auditor and explain the necessity of signing the ADT-3 form for proper compliance. - **Legal Remedies**: Consider legal options if the ex-auditor continues to refuse without valid reasons. This could involve sending a legal notice demanding compliance.
2. **Appointment of New Auditor**: - **Board Meeting**: Convene a board meeting to approve the appointment of the new auditor. Ensure proper documentation of the board resolution approving the appointment. - **Intimation to New Auditor**: Inform the new auditor about their appointment and provide them with necessary details.
3. **ADT-3 Form Submission**: - If the ex-auditor continues to refuse to sign ADT-3: - **ROC Communication**: Inform ROC about the situation and provide documentation showing attempts to obtain the ex-auditor’s signature. - **Declaration**: Submit a declaration along with ADT-3 form explaining the situation and that the ex-auditor has refused to sign despite fulfilling all dues.
4. **SRN Generation for ADT-1**: - SRN (Service Request Number) for ADT-1 is generated upon successful submission of the appointment of the new auditor (Form ADT-1) on the MCA (Ministry of Corporate Affairs) portal. - Ensure that after the board resolution and ADT-1 form submission, the SRN is noted down for future reference.
### Practical Steps:
- **Legal Assistance**: Consider seeking legal counsel to draft a legal notice to the ex-auditor if required. - **ROC Compliance**: Adhere to all ROC guidelines and deadlines to avoid penalties or non-compliance issues. - **Documentation**: Keep all communications, resolutions, and forms documented properly for audit and compliance purposes.
### Conclusion:
Appointing a new auditor when the ex-auditor is uncooperative requires adherence to legal procedures and clear communication with all parties involved. By following the steps above and ensuring proper documentation, you can facilitate a smooth transition and maintain compliance with ROC regulations. If necessary, seek assistance from a legal professional who specializes in corporate governance and compliance issues.
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