The Process of Removing an Auditor
Step 1: Shareholders Issue a Special Notice
- Shareholders intending to remove an auditor
- Must first give a Special Notice to the company
Step 2: Company Notifies the Auditor and Registrar
- Upon receiving the Special Notice
- The company must immediately send a copy to the auditor
- The company must also submit to the Registrar:
- A copy of the Special Notice
- Sec 277 Form (Notification of a Special Notice to Remove Auditor)
Step 3: Auditor Submits a Written Representation
- The auditor must submit a Written Representation to the company within 7 days
- The auditor may also request the company to:
- Circulate the representation to all shareholders entitled to attend the general meeting
Step 4: Auditor Files Documents with the Registrar
- Within 7 days after submitting the Written Representation
- The auditor must lodge the following with the Registrar:
- A copy of the Written Representation
- Sec 284 Form (Cessation of Office by Auditor)
Step 5: Shareholders Vote on the Resolution
- The company convenes a general meeting
- Shareholders vote on the Resolution to remove the auditor
Step 6: Company Files Final Notification
- Once the resolution is passed
- The company must submit the following within 14 days after the meeting:
- Sec 278(1) Form (Notification to Remove Auditor from Office)
- This formally notifies the Registrar that the auditor has been removed
Summary
- The removal of an auditor must follow the statutory procedures under the Companies Act 2016
- The process involves coordination between the company, auditor, and Registrar
- All forms and deadlines must be complied with to ensure the removal is legally valid and effective