Removal/Resignation of Auditors
The auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf in the prescribed manner:
Provided that before taking any action under this sub-section, the auditor concerned shall be given a reasonable opportunity of being heard.
The auditor who has resigned from the company shall file within a period of 30 days from the date of resignation, a statement in the prescribed form with the company and the Registrar, and in case of companies referred to in sub-section (5) of section 139, the auditor shall also file such statement with the Comptroller and Auditor-General of India, indicating the reasons and other facts as may be relevant with regard to his resignation.
FAQ on Resignation of Auditor:
What are the compliances for Resignation of Auditors?
ADT-2 Application for removal of auditor(s) from his/their office before expiry of term ADT-3 Notice of Resignation by the Auditor
What is the penalty for non compliances?
- Fine which shall not be less than 50,000 but may extend up to 5,00,000.