The auditor appointed under section 139 may be removed

Solution

Removal of Auditor • An auditor can be removed before the completion of his/her term by: 1. passing a special resolution by the company and 2. obtaining prior approval from the central government in prescribed manner (form ADT-2 as prescribed in Rule 7 of the Companies (Audit & Auditors) Rules, 2014 along with prescribed fee) and 3. Before being removed by the firm, the auditor is given a fair and reasonable chance of being heard • The application has to be made within thirty days of the resolution passed by the board. • The company can hold a general meeting within sixty days of receipt of the approval of the Central Government for passing the auditor appointment resolution. • Note - In case of death of the auditor (if it is an individual), the casual vacancy shall be filled within 30 days by the board. He/ She will hold office till the next AGM.