what is the difference between Removal of auditor before expiry of his term and the appointment of auditor other than retiring auditor when his term is not completed??

Questions › Category: Co. Audit - I › what is the difference between Removal of auditor before expiry of his term and the appointment of auditor other than retiring auditor when his term is not completed??

0 Vote Up Vote Down

Yash Chauhan asked 7 years ago

1 Answers

0 Vote Up Vote Down

audit Staff answered 6 years ago

Removal of auditor before expiry is 4 step process as per 140(1)
–opportunity of being heard
–bod resolution
–CG approval
–special resolution
it is to be applied if auditor is removed before end of term of 5 AGMs, this can happen any time in 1st year or 2nd or 3rd etc
Now appointing auditor other than retiring auditor—–
auditor retires at end 5th AGM, so appointing someone other than retiring also happens at the end of 5 years it is 5 step process as per 143
so now conclusion 1st thing happens before end of 5 years and 2nd at the end of 5 years
“appointing some one else when term is not complete” such term is not used in Sec 140.