QuestionsCategory: Co. Audit - ISection 140(4) Removal of auditor at expiry: Sir jab uska term expiry he ho gaya hai to removal procedure lagane ke jarurat he nahi hai. waha apne app he remove ho jayega.
ARVIND VERMAARVIND VERMA asked 6 years ago

Sir koi company section 140(4) ka procedure he kyu lagaye jab us tenure he khatam ho gaya hai to? please exppain.

1 Answers
RaviRavi Staff answered 6 years ago

correct shahnawaz
but law has deliberately covered this situation and we call it concept of “Removal at Expiry” , this is done so that auditor should get full opportunity to communicate to shareholders his point of view in continuing with the company. 
so law gives auditor opportunity to put his point when shareholders decide whether to continue old auditor or bring in new one