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    Question

    The auditor appointed under section 139 may be removed

    from his office before the expiry of his term only by a special resolution of the company , after obtaining the previous approval of the Central Government. The application shall be made to the Central Government within ________ of the resolution passed by the Board.
    A 7 days Correct Answer Incorrect Answer
    B 21 days Correct Answer Incorrect Answer
    C 30 days Correct Answer Incorrect Answer
    D 42 days Correct Answer Incorrect Answer
    E 60 days Correct Answer Incorrect Answer

    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.

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