Auditor, removal of
Auditors may be removed at any time by those appointing them. In the case of limited companies the auditor can only be removed by a resolution at a general meeting, except in such cases where he is removed by the relevant Court or is legally disqualified from acting as auditor because: (1) there is a flaw in his appointment; (2) he no longer fulfils the conditions of employment required by law; or (3) he is not reappointed at the A.G.M. If he is to be removed, then notification of the impending resolution must be given to members at least twenty-one days before the meeting – notice of intention to put the resolution must have been given to the company twenty-eight days before the meeting. When the company notifies the members it must also notify the auditor and he is allowed to attend and speak in his own defence at the meeting and/or request that a statement made by him be circulated among members before the meeting takes place.
If an auditor is removed during his term of office, rather than at its normal termination, he is entitled to attend the A.G.M. following his removal in addition to the meeting at which his removal is effected.
Reference: The Penguin Business Dictionary, 3rd edt.
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