Bytes

Bytes - Your weekly dose of
investments, taxes, finance & more.

IT Portal 2.0
www.incometax.gov.in

IT Portal 2.0

Check out the latest videos explaining the various features of the new portal
www.incometax.gov.in
previous arrow
next arrow

Board Meeting : Resignation of Auditor

author portrait

Maharshi Shah

Auditor Resignation
Board Meeting
Last updated on April 28th, 2021

A board meeting is a formal gathering of a Board of Directors. Most of the organizations, being public or private, profit or non-profit, are ultimately governed by a body commonly known as Board of Directors. The members of this body cyclically meet to discuss strategic matters. A Board Meeting is to be held and attended by the Board of Directors of the Company to discuss the topic of the Resignation of the Auditor as well.

The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The Appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.

Rotation of Auditors

When there is resignation of Auditor then while re-appointing Auditors for a limited company or specified company, it is important to be aware of the regulations pertaining to the rotation of auditors:

Following are the important points that are to be taken under consideration by the Board of Directors while rotating auditors of the Company:

Board Meeting - Resignation of Auditor

Thus, review your Board Meeting Minutes immediately after the meeting. When your board meeting minutes are complete and finished, make sure they are distributed to board members as soon as possible. Once the minutes are approved by a vote of the members during the board meeting, they become part of the official record of the organization. It’s important that a copy of all minutes are kept in one place.

Download Meeting Minutes
Download Sample Board Meeting for Resignation of Auditors
Download
Download Meeting Minutes
Download Sample Board Meeting for Resignation of Auditors
Download

FAQs

What are the documents that are to be filed with the ADT-2 for the removal of the auditor of a Company?

The documents that are reuired to be filed with the ADT-2 :
1. Service request number of Form MGT-14
2. Date of
– Filing the form
– Passing the special resolution
– The annual/extraordinary general meeting

How many years can an auditor audit for a Company?

Auditors must be rotated or changed periodically every 5 years by the company to maintain compliance with the Companies Act, 2013. The auditor typically holds term till the conclusion of 6th AGM or 5 years. Moreover, the appointment of an auditor can also be made for a period of 1 year which is renewable at each annual general meeting.

Is it necessary to fill in any casual vacancy of an auditor?

Any casual vacancy of the auditor must be filled by the Board of Directors within 30 days. If the casual vacancy is on account of a resignation of an auditor, then the appointment of the auditor must be approved at an Extra-Ordinary General Meeting. Which is to be convened within 3 months of the recommendation of the Board.

Got Questions? Ask Away!

  1. Hi @Dixita

    ADT-2 is to be filed for removal of auditor(s) from their office before expiry of term while ADT-3 is the notice of resignation by the Auditor.

    A Company will need to hold a Board Meeting and pass a resolution in such cases. You can read more about that here:

    Hope this helps!