Sir,
One of my clients is a private limited company. In the AGM held on 14.08.2013, he appointed the auditor as usual for the Accounting year 2013-14. Now he wish to change the auditor. please tell us the procedure.
Thanks
1 Replies
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 11 January 2014
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).
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