removal of auditor

This query is : Resolved

c.bakshi (Querist)
Follow

07 March 2011 if a company not satisfied with the services of it's CA and wanted to remove him? can anybody suggests that how a company do so?wt point of disqualifications can be used to satisfy the hon'ble board?

BALASUBRAMANYA B N

BALASUBRAMANYA B N

(Expert)
Follow

07 March 2011 REMOVAL OF AUDITORS [Section 224(7)]

Board of directors has no power to remove an auditor

The Board of directors of a company has no powers to remove an auditor appointed by the company in general meeting. Accordingly, the said auditor can be removed only by the company in general meeting after receiving the previous approval of the Central Government under section 224(7). Powers has been delegated to the Regional Director vide Notification No. GSR 288(E), dated 31-5-1991.

Removal of auditor(s) at a general meeting with the prior approval of the Central Government

As per Section 224(7) an auditor can be removed before expiry of his term only by the company in general meeting after obtaining the previous approval of the Central Government (Power has been delegated to the Regional Director).

Removal of first auditors.—The company may, at a general meeting, remove first auditor(s) or all or any of such auditors and appoint in his or their places any other person or persons who have been nominated for appointment by any member of the company and of whose nomination notice has been given to the members of the company not less than fourteen days before the date of the meeting.

c.bakshi

c.bakshi (Querist)
Follow

08 March 2011 Dear Sir,

first of all, thanks for the reply...actually procedure is known to me...i will wanna sent request to regional director for the removal of auditor before the expiry of his term....my query is wt ellegations i can imposed on such auditor...i m dissatisfied by the auditor

Upgrade to CAclubindia Pro. Subscribe Now!