Removal of auditor

This query is : Resolved

Binu K P (Querist)
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27 August 2016 Our CA Firm is to be appointed as auditor of the company for FY 2015-16 and existing auditor need to be removed. On behalf of the company, I have to do the removal procedure.

My doubt is that :
As per Sec140(1) of Companies Act 2013 read with rule 7 of chapter 10 of Companies rules, it says that " the company shall hold the general meeting within sixty days of receipt of approval of the Central Government for passing the special resolution". So, it means that after the company get the approval of CG only, they have to pass a special resolution in AGM/EGM ,isn't it??

But in ADT-2 Form, the 2 (out of 3)mandatory attachments are "Copy of special resolution" and "Minutes of AGM or EGM" and also it is mandatory to quote the MGT-14 SRN number.

So Sir, practically should the company pass two special resolution in GM i.e. 1)after board resolution and before ADT-2 filing and 2)after the approval of CG ??? Or does it mean anything else???

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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29 August 2016 Generally the AGM has to be passed after the approval from the Central Government. Since in this case, Central Government approval is mandatory, the same has to be passed first.