15 September 2014
RESIGNATION OF AUDITOR- Section 140 (2), 140 (3)and Rule 8
The auditor who has resigned from the company shall file a statement in Form ADT-3 indicating the reasons and other facts as may be relevant with regard to his resignation as follows: (i) In case of other than Government Company, the auditor shall within 30 days from the date of resignation, file such statement to the company and the registrar. (ii) In case of Government Company or government controlled company, auditor shall within 30 days from the resignation, file such statement to the company and the Registrar and also file the statement with the Comptroller and Auditor General of India (CAG). The onus to file such statement containing relevant facts and reasons for resignation is on the resigning auditor and any contravention of sub clause (2) is punishable with monetary fine which could be minimum Rs. 50,000 and maximum Rs. 5 lakh.
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