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Removal Of Auditor

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Removal Of Auditor

No new auditor can be appointed in place of an existing auditor unless the latter has been given a due notice according to the companies Act. The companies Act does not lay down anything as to what will be the consequences if a due notice is not given to the retiring auditor or the members. However, according to law if a due notice has not been given the resolution regarding the removal of the auditor cannot be put before the general meeting. If still the auditor has to be removed, again a general meeting must be held to remove the auditor.
An auditor can be removed only by the general meeting, with the approval of the central government but the first auditor van be removed by the general meeting.

The first auditor who is appointed by the directors to hold the office till the conclusion of the first annual general meeting may be removed before the expiry of  his term by the general meeting even without the approval of the central government, provided at-least a 14 days notice before the holding of the meeting had been given to him.

If under any circumstances , it is desired to remove an auditor before the expiry of his term, the approval of the central government must be obtained before holding the general meeting at which a resolution removing him is passed. A due notice must be given to the auditor to enable him to make any representation if he so desires. He has the right to attend such a meeting and speak at the meeting.

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