Question

A company auditor may be removed in ___________.

• A. The managing director
• B. Any one director
• C. Board of directors
• D. General meeting

Answer 1

Answer: (D)

General meeting

Section 140 (3) of the Companies Act 2013 provides the rule for removal of auditor of a company. An auditor may be removed in the following scenario:

1) Before the expiry of a term

2) After the expiry of a term

A special resolution along with prior approval of central government is required for removal of auditor before the expiry of a term.

An auditor can be removed by the company by passing a resolution in a general meeting, after the expiry of a term.