The auditor can be removed from his office before the expiry of his term only by passing a special resolution* and after obtaining prior approval of the Central Government.
Applicable Section and Rule | |
|---|---|
Applicability:
All types of companies
Important Points
The Auditor appointed can be removed before the expiry of his term only after:
But the auditor should be given an opportunity of being heard before taking the above steps.
*A resolution shall be a special resolution when—
(a) the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution;
(b) the notice required under this Act has been duly given; and
(c) the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and voting.
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