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REMOVAL OF AUDITOR IN THE PVT. LTD. COMPANY

amar preet singh (professional) (229 Points)

14 October 2009

HOW WE CAN REMOVE AUDITOR IN THE PVT. LTD. COMPANY. KINDLY LET ME KNOW IT IS VERY URGENT ?

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13 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114778 Points)
Replied 14 October 2009

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.

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CA GIRISH (Chartered Accountant) (1796 Points)
Replied 14 October 2009

I DONT THINK SO U NEED ANY MORE CLARIFICATION MR.AMAR

SAI PREM (CA FINAL) (44 Points)
Replied 22 July 2011

Dear Sir,

What if the auditors gives the letter stating the unwillingness to perform the audit ?

what the company need to do.....

Pls reply..

Regards

Saiprem.

RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 22 July 2011

Hi,

In case of unwillingness removal is not required. After receiving the letter of his unwillingness discuss the matter in BM and finalise the name of new auditor to be appointed in the AGM.

Also give details of new auditor in AGM notice and mention the unwillingness of previous auditor as a reason of his dis-continuation with the company.

In the AGM appoint the new auditor with the approval of members.

Regards

1 Like

RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 22 July 2011

Also note one more thing:

There is a diff between unwillingness and resignation in company law. An auditor can resign in the middle of the FY but can not express his unwillingness to continue audit.

In other words unwillingness is concerned with the re-appointment as auditor in the AGM for the whole FY.

Rgds

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SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 22 July 2011

All the queries posted in CA Club are open ended scheme :) Message posted 1 yr ago are answered now. Modulator ji-can u put a system so that the author himself, on his satisfaction, can tag the discussion as asnwered satisfactorily'?

RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 22 July 2011

Kindly review again....

query asked by Sai Prem ji was posted today itself...and answered instantly...

Thanx

konica (proprietor) (25 Points)
Replied 14 November 2013

An auditor has been removed by a company without taking approval from central govt /RD.What are the remedies available to auditor or what counter part is available to him against new appointed auditor and company.New auditor has neither informed nor taken and NOC from previous auditor

ACS MUKUNDA (Company Secretary) (65 Points)
Replied 15 November 2013

Dear Sir, i think the share holders can remove the auditor by giving special notice u/s 190 of the companies Act,1956 in the AGM and auditor will be given an opportunity to submit his statement

Pawan (ca Final) (32 Points)
Replied 10 September 2014

Dear Sir,

One of my clinte has newly formed company.In which he has made no trasaction since it was his incenption year.He has appointed Auditor,and offer letter was given,stating that the fee will be mutually agreed.But now The auditor is demanding the fees which is very high and he is not even signing balance sheet unless the cheque is given to him nor he is giving resignation.

Further,Among board of Director,a promoter director has also in the side of Auditor,He holds 5% share of the company.Threre are total four directors.

Now ,the management is in trouble how to deal and tackle in this matter.

My personal Mail id is-incometax8294 @ gmail.com

Thanks & Regards

Pawan Agarwal

9830606463(Kolkata)

Please reply to this on urgent basis as it is related to F.Y.2013-14

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G.Gowtham (MBA) (22 Points)
Replied 21 January 2015

Hello,

If the auditor is in sick he unable to do his service, company will deside to remove the auditor by giving notice for NOC company can do like this?

G.Gowtham (MBA) (22 Points)
Replied 21 January 2015

Hello,

I want letter format for asking NOC from auditor, The auditor is sick he unable to do the all IT fillings.

Redpin Media (2 Points)
Replied 10 April 2018

Hi.... There's a situation where the auditor refuses to audit and refuses to give resignation too. Also the previous term is over. He is not working, he is not resigning, the date 31st March 18 to file for 2016-2017 is also over. We are stuck and helpless. Pls guide.