Sir as per section 139(4) first auditor can hold office till the conclusion of first AGM and section 140 attracts only when auditor removed before the expiry of his term. It is written in PM that to remove the first auditor in the General meeting we require CG approval. Kindly tell me why it is so.
Please specify question number.
Sec 140 will be applicable for removal of any auditor before expiry of his term. Whether it is first auditor oe any other auditor. So sec 140 is applicable in case of first auditor also.
Now term of first auditor gets over in “AGM (Annual General Meeting)” so removal before AGM will need
1. Opportunity of being heard
2. BOD resolution
3. CG Approval
4. Special Resolution (at general meeting, this meeting will be generally Extra Ordinary General Meeting)
So tenure is till AGM but removal will take place before it in EGM after CG approval.