CA Inter P5 · Chapter 11 · Question 11 of 13
The members of Dhara Polymers Ltd. wish to remove the statutory auditor before the expiry of the term. Under section 140(1) of the Companies Act, 2013, this requires:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A special resolution of the company after obtaining the previous approval of the Central Government, and giving the auditor a reasonable opportunity of being heard
Explanation
Section 140(1) provides that an auditor appointed under section 139 may be removed before expiry of the term only by a special resolution of the company, after obtaining the previous approval of the Central Government. The auditor concerned must be given a reasonable opportunity of being heard before removal.
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