A small private limited company(Capital of Rs 1 lacs) had an auditor who completed 4 years till 31/03/2014.Form ADT-1 was filed appointing him for a period from 1/4/2014 to 31/3/2019..
If from 1/4/2015,another auditor has to be appointed,what would be the procedure to be followed? There is no clause of retirement by rotation in the Articles.
What I understand is that
1.The shareholders would have to send a special notice.
2. The company would send that notice with AGM notice and statement of special business to the members and also the old auditor.
3.Passing of special resolution proposing the removal of the auditor and appointing another auditor..Here the representation of old auditor would be read in AGM
4. Filing of MGT-14 w.r.t. Special resolution
5.Filing of ADT-2 within 30 days of AGM.
6. Holding of EGM within 60 days of Central govt approval.
7.Passing resolution of appointment of new auditor and removing old auditor.
Also would a Board Meeting be held in before the EGM and after the Central Government approval for the appointment of new auditor(taking consent letter and certificate) before proposing his name in EGM?
Or would a Board Meeting be held before the AGM proposing to remove the old auditor?
Kindly guide.
CAclubindia
