CA Inter P2 · Chapter 9 · Question 5 of 11
Under section 140(1), an auditor appointed under section 139 may be removed from office before the expiry of his term only by:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A special resolution of the company, after obtaining the previous approval of the Central Government
Explanation
Section 140(1) requires a special resolution of the company after obtaining the previous approval of the Central Government before an auditor can be removed during his term. The auditor must be given a reasonable opportunity of being heard. Removing an auditor at the end of the term, by not reappointing him, needs special notice under section 140(4).
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