20 October 2010
If a private company wants to remove an existing auditor and appoint a new audit the following procedure will need to be followed. 1. Members by ordinary resolution after giving special notice can remove an auditor (section 510). 2. The company must give the existing auditor special notice of the meeting for resolution removing auditor from office (section 511). 3. If the existing auditor wants to make representations the company must send these to every member of the company (unless the company applies to the court not to do so). 4. Where a resolution removing auditor from office is passed under section 510, the company must give notice of that fact to the registrar within 14 days. 5. The auditor who has been removed from office has the right to attend, make representations to and be heard at the general meeting of the company at which his term of office would otherwise have expired or at which it is proposed to fill the vacancy caused by his removal (section 513).
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