ADT-3

Notice of resignation by the Auditor

As per the provisions of Section 139 of the Companies Act, 2013, every Company is required to appoint an Auditor to audit the books of account of the Company.

The auditor so appointed may resign at any time due to any reason before the expiry of his term of office. In doing so he has to follow the provisions as laid in the Act and a summary of the important points are reproduced herein below for ready reference.

Applicability: 

All types of companies

Summary:

  • Auditor who has resigned from the Company has to file a statement along with Resignation Letter within 30 days with:
    1. The Company
    2. The Registrar of Companies
    3. CA&G, in case of Government Company

indicating the reasons for tendering his resignation.

  • The resignation of the auditor needs to be intimated to the Registrar of Companies vide Form ADT – 3 along with a copy of the resignation letter.

Penalty:

Rs. 50,000/- or remuneration of auditor whichever is less and for continuous default, Rs. 500/- per day up to Rs. 2 Lakhs.

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