Format of Intimation letter of Removal of Auditor under section 140 of the Companies, Act, 2013

Background

Any auditor is appointed under section 139 of the Companies, act 2013 for the term of 5 financial years. However, in the day to day business, there are many instances, where companies seek to remove the auditors and they do it directly without giving any opportunity of being heard. Hence, make sure before initiating any action under section 140, an opportunity of being heard should be provided.

You can download the letter for removal of Auditor under Section 140 of Companies Act, 2013 from the link below

Brief process of Auditor Removal

1. Send letter of removal to intimate the auditor about their removal and provide them opportunity of being heard.
    
2. After taking its consent, call board meeting and file ADT-2 for approval of central government.
    
3. After CG approval, call EGM and replace auditor with the new auditor. Special resolution will be required.
    
4. The new auditor should also intimate the previous auditor before taking the up the audit,
   via “Letter to previous Auditor” as per CA ethics.
    
5. File new ADT 1 and finish the other formalities.