14 March 2011
The case is regarding a pvt; ltd. co. Mr. X is the auditor of the co. since inception in 1986. Now the directors want to remove Mr.X for their own vested interest. The date of last AGM was 30.09.2009. for the year 2008-09 wher Mr.X was reappointed. The next AGM date is fixed by the directors as 29.03.2011. for the F.Y.2009-10. The notice of the AGM contains agenda of removing Mr.X and appointing Mr.Y as auditor. Now who will be the auditor for the F.Y.2009-10? Can Mr. x be removed all of a sudden and Mr. Y is appointed as auditor? What is the right procedure of doing such.
14 March 2011
On 30.09.2009, u must have appointed Mr. X as the Statutory Auditor of the Company for the financial year 2009-10. The AGM of the Company for the financial year 2009-10 was held on 29.03.2011. On 29.03.2011 u will be appointing Mr. Y as the Statutory Auditor of the Company for the financial year 2010-2011.
Follow the procedure provided under section 225 of the Companies Act, 1956 for appointing an auditor other than an auditor retiring by rotation or to expressly resolve that the retiring auditor shall not be re-appointed.
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