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Vismay ShahVismay Shah asked 2 years ago
Vismay ShahVismay Shah replied 2 years ago

And the companies to which rotation is not applicable, for them after expiry of speicified term of existing auditor section 140(4) is applicable to remove him?

Vismay ShahVismay Shah replied 2 years ago

Hello Sir, i understood that for removing the existing auditor before his tenure,Special resolution is required but after removing him for appointing new auditor also special resolution is required?

1 Answers
RaviRavi Staff answered 2 years ago

no only for removal before expiry special resolution
then for appointment ordinary resolution will be required

Vismay ShahVismay Shah replied 2 years ago

As per 140(4) Special notice shall be required for resolutions at an AGM as auditor a person other than retiring auditor or providing expressly that a retiring auditor shall not be reappointed except where the tenure has completed.
So here as per provision for special notice, appointing new auditor or removing existing auditor both are one and same. So under section 140(4) for appointing new auditor ordinary resolution is required and for removing existing auditor special resolution is required , Why??
So if i want to appoint new auditor other than retiring auditor before expiry of term, do i need to pass special resolution or ordinary resolution? Please clarify it.

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