AUDITOR CANNOT BE CHANGED IN THIS AGM except by resignation or removal:
26. First auditor , either appointed in BM or in GM , shall hold office up to first AGM only(not 5 years ).
27. Casual vacancy of auditor:
i) by resignation,shall be filled in GM & he shall hold office upto next AGM .
ii) Other casual casancy be filled by BOD
28. ROC filling is not a management service, as it is a service rendered in independent professional capacity. Management service, in my opinion, means service rendered on on behalf of management, which management itself obliged to do.
29. If GNL2 has been filled last year, no ADT1 is required to be filled this year for ratification.
30. Procedure prescribed u/s 140(4) of special notice for appointment of other auditor, are for retiring auditor only i.e. if he had completed his term of appointment.
31. An auditor who has not completed term of appointment , say, 5 year, is not a retiring auditor, in my opinion. Hence, Sec 140(4) will not be applicable( for change of auditor in this AGM) .
Conclusion: An auditor generally can not be changed in this AGM except by his (i) resignation or (ii) removal by approval of central Government.
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