16 September 2013
HEY ALL, A CO. IS FORMED IN AUGUST 2012 & WITHIN ONE MONTH FIRST AUDITOR IS APPOINTED BY BOD. NOW AS PER CO. LAW THE FIRST AGM SHOULD BE HOLD WITHIN 18 MONTHS. SO MY QUESTION IS WHAT IS THE PROCEDURE TO REMOVE FIRST AUDITOR BY BOD BEFORE AGM...PLEASE QUOTE THE RELEVANT SECTIONS....& IF POSSIBLE THE EXACT EXTRACT OF BARE ACT... I WILL BE REALLY THANKFUL.....:)
Normally for removal of auditor approval of Central Govt would be required u/s 224(7).
But for the removal of first auditor approval of Central Govt is not required and you can simply propose the name of new auditor in place of old auditor. This new auditor will be appointed by the shareholders.
21 September 2013
There is no provision in company law where Board possess the power of removal of auditor. So I would also second the opinion of expert.