Appointment and Removal of auditor

Appointment and Removal of Auditor in India

Introduction

Auditors play a crucial role in ensuring the accuracy, transparency, and compliance of a company’s financial statements. As per the Companies Act, 2013, every company registered in India must appoint a statutory auditor and, when necessary, follow due process for their removal or replacement.

Our team of corporate compliance experts assists you in the appointment or removal of auditors, ensuring that the process is completed legally, smoothly, and on time.

Legal Provisions

Appointment of Auditor

• First Auditor – Appointed by the Board within 30 days of incorporation.

• Subsequent Auditor – Appointed by shareholders in the Annual General Meeting (AGM) for a term of 5 years.

• Appointment to be filed with ROC using Form ADT-1.

Removal of Auditor

• Removal before the expiry of term requires Central Government approval (Form ADT-2).

• A special resolution must be passed in a general meeting.

• The auditor concerned must be given a reasonable opportunity of being heard.

Reasons for Change in Auditor

• Completion of the auditor’s term.

• Auditor’s resignation.

• Company’s internal restructuring.

• Dissatisfaction with audit services.

• Compliance with rotation requirements under the law.

Step-by-Step Process

For Appointment

1 Board Resolution – Propose the appointment.
2 Shareholder Approval – Pass an ordinary resolution in the AGM.
3 File Form ADT-1 with ROC within 15 days.

For Removal

1 Board Meeting – Propose removal.
2 Central Government Approval – File ADT-2 within 30 days.
3 Shareholder Approval – Pass a special resolution.
4 File Form ADT-3 if auditor resigns voluntarily.

Documents Required

For Appointment

• Board resolution copy.

• Shareholder resolution copy.

• Consent letter from auditor (Form 26).

• Certificate from auditor confirming eligibility.

For Removal

• Board resolution copy.

• Government approval letter.

• Special resolution copy.

• Correspondence with the outgoing auditor.

Why Choose Us?

End-to-End Assistance – From drafting resolutions to ROC filings.
Experienced Professionals – In-depth understanding of corporate laws.
Quick Turnaround – Ensure compliance within legal timelines.
Transparent Pricing – No hidden charges.

Timeline

• Appointment process: 3-5 working days

• Removal process: 7-10 working days (subject to government approval)

Get Started Today!

Ensure your auditor change is legally compliant and stress-free.

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