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Removal /Resignation of Director

REMOVAL/ RESIGNATION OF AUDITOR

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    RESIGNATION OF AUDITOR

    A statutory auditor of the company may on its own resign after giving notice in this respect to the company. The period of notice as may be agreed with the company. The auditor shall mandatorily file reasons and facts of resignation to the company and registrar.

    REMOVAL OF AUDITOR

    Company even before the expiry of the term may removal the auditor of company if the company is not satisfied with the services of the auditor. Before the removal of the auditor an opportunity of being heard shall be given.

    HOW WE WORK

    Fill the Form and make nominal payment.

    1. Fill the Form and make nominal payment.

    After payment our experts will connect to you regarding documents and process.

    2. After payment our experts will connect to you regarding documents and process.

    Drafting of necessary resolutions & documents Preparation of application.

    3. Drafting of necessary resolutions & documents Preparation of application.

    Drafting and filing of e-forms by the experts of LEGALDISHA.

    4. Drafting and filing of e-forms by the experts of LEGALDISHA.

    Delivery of acknowledgement and receipt to you.

    5. Delivery of acknowledgement and receipt to you.

    CONGRATULATIONS YOU GOT YOUR APPOINTMENT OF AUDITOR DONE !!!

    DOCUMENTS REQUIRED

    Digital Signature Certificate
    Digital Signature Certificate

    DSC of director to sign forms.

    Special Resolution
    Special Resolution

    Copy of special Resolution appointing the auditor.

    Minutes
    Minutes

    Minutes of general meeting.

    Grounds of removal /resignation
    Grounds of removal /resignation

    Details of grounds for seeking removal /resignation of auditor.

    PROCEDURE OF RESIGNATION OF AUDITOR

    1
    DOCUMENTS & FILLING OF FORMS

    Receipt of Resignation letter by Auditor and filing of e-forms along with required information and statements of reasons and facts of resignation.

    2
    CONDUCTING MEETING

    Convene Board Meeting for Taking note resignation letter and Filing casual vacancy caused due to resignation.

    3
    FILING OF E-FORMS

    Filing Form for resignation with required documents and submission of e-forms. Acknowledgment will be generated.

    PROCEDURE OF REMOVAL OF AUDITOR

    1
    COVENING MEETING

    Convening Board Meeting to Consider removal of the statutory auditor and authorize person to make an application. Holding of General Meeting of members for passing special resolution.

    2
    APPLICATION TO CENTRAL GOVERNMENT

    Application to Central Government in form ADT-2 within 30 days of passing board resolution.

    3
    INTIMATION TO AUDITOR

    Intimation to auditor who was removed with a certified copy of the resolution passed and the copy of approval of Central Government.

    4
    FILING OF E-FORM

    Filing with Registrar: MGT-14 with the requisite fees and copy of special resolution within 30 days.

    Frequently Asked Questions

    Who is eligible to be appointed as an Auditor?

    Following are eligible to be appointed as an Auditor:-

    • A firm or LLP – If majority of partners practicing in India are qualified for appointment as an auditor of a company .
    • An individual -If he is chartered accountant a proper holding certificate of practice under the Chartered Accountant Act, 1949.

    What are the conditions for the removal of auditor?

    The conditions for the removal of auditor are:-

    • Pass special resolution in the general meeting
    • Obtain previous approval of Central Government
    • Give opportunity of heard to the auditor before removal.

    What is the consequences of non-filing adt-3 by auditor?

    Auditor shall be punishable with penalty of Rs. 50000 or current remuneration of the auditor ,whichever is less.

    Is it mandatory to provide opportunity to be heard before removal?

    Yes it is mandatory requirement for the company to provide opportunity to be hear to the auditor in case of removal.

    What are the services not to be rendered by the auditor?

    As per the provisions of companies Act 2013, The auditor is not eligible to render following services:-

    • Accounting and Book Keeping services.
    • Internal audit.
    • Designing and implementing financial information system.
    • Actuarial services.
    • Investment advisory services.
    • Investment banking services.
    • Rendering of outsourced financial services.
    • Management services.
    • Any other services as may be prescribed.