Home › CA Inter › corporatelaws › Auditor Removal › Removal of an auditor BEFORE expiry of the term …
Removal of an auditor BEFORE expiry of the term requires:
AOrdinary resolution of members
BBoard resolution only
CApproval of the NCLT
DSpecial resolution + Central Government approval
Answer & Solution
Correct answer: D. Special resolution + Central Government approval
1. Section 140(1) — removal of the auditor before expiry requires a SPECIAL RESOLUTION and PRIOR APPROVAL of the Central Government.
2. Auditor has a reasonable opportunity of being heard.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Audit and Auditors_