Question

Which of the following statements is not correct regarding removal of first auditor before expiry of the term?

• A. He is removed at a general meeting.
• B. The shareholders are authorized to do so.
• C. The approval of the Central Government is required for such removal.
• D. The provisions for such removal are contained in section $224\left(7\right)$.

Answer 1

The correct option is C The approval of the Central Government is required for such removal.

In case , first auditor is removed before expiry of his term, approval of Central government is not required since shareholders take this decision in the general meeting. The procedure is in accordance with the companies act.