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Owner : Neeraj Sharma
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Created : 08-Jun-2011, 08:40:42


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Topic Title

Community : post your query here
Topic : company law

By : Vidisha
  

can auditor b removed in extraordinary general meeting? nd permission of central govt is necessory?



By : Anjali Arora
  

For Pvt. Ltd. Co. or Public Ltd. Co., because the procedure is diff for both.



By : Kanchan
  

what do you mean by centeral govt approval and EGM.

IF AUDITOR IS TO BE REMOVED BEFORE EXPIRY OF HIS TERM IT MEANS HE WILL BE REMOVED IN EGM, IT IS ABNORMAL TYPE OF REMOVAL...

THE TERM OF OFFICE OF AUDITOR IS "UPTO CONCLUSION OF NEXT AGM TO HIS APPOINTMENT", IF HE IS TO BE REMOVED FROM HIS OFFICE AT THE AGM THATWILL BE THE NORMAL PHENOMENA AND HENCE NO CG APPROVAL SHALL BE REQUIRED.

BUT IN CASE OF EGM WHEN HE IS GOING TO BE REMOVED BEFORE EXPIRY OF HIS TERM , IT IS NEEDED TO ENSURE THAT NO EXISTING AUDITOR IS REMOVED FROM OFFICE WITHOUT SUFFECIENT RESONS, HENCE CG APPROVAL IS REQUIRED IN THIS CASE

WE CAN CONCLUDE THE ABOVE AS FOLLOW:

first auditor:first auditor can be removed before expiry of his term, without obtaining approval of CG, by passing an ordinary resolution in th GM( whether agm or egm). no specail notice is required.

other than first auditor:previous approval of centeral govt is required;ORDINARY RESOLUTION will be passed in the EGM; no special notice is required. however if auditor has to be removed at AGM, no centeral govt approval is needed, but special notice shall be required.


 
   

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