RESIGNATION OF AUDITOR UNDER SECTION 224 (6) OF THE COMPANIES ACT 1956

RESIGNATION OF AUDITOR UNDER SECTION 224 (6) OF THE COMPANIES ACT 1956

1. Convene a Board Meeting by giving a notice to the directors as per sec 286 of the Companies Act 1956
2. The Company shall get a certificate from the new auditor appointed under sec 224(1B). 224(1B) says that the auditors can audit for a maximum of only 20 Companies. In case of Auditor firm each partner of the firm shall be audit for 20 companies. Private limited companies can be excluded in calculating the number of companies

3. Consider the resignation of Auditor and fix day, date, time and place to hold an Extraordinary General Meeting for appointment of new auditor
4. Sent notice for Extraordinary General Meeting to the members, directors, auditors, etc
5. Conduct Extraordinary General Meeting, pass ordinary resolution as per sec 224(6)(a) of the Companies Act 1956, for filing of casual vacancy caused due to resignation of auditor.                        DRAFT RESOLUTION

  RESOLVED that pursuant to sec 224(6)(a) of the Companies Act 1956, M/s. XYZ & Co, Chartered Accountants, be and are  hereby appointed to  fill up the  casual vacancy caused due to the resignation made by M/s. ABC & Co, Chartered Accountants the present auditors, to hold office from the date of this meeting till the conclusion of the next annual general meeting with a remuneration to be  fixed  by the Board.

  

6. Intimate the new auditor about his appointment within 7 days of passing resolution.
7. The auditor shall file Form 23B within 30 days of the intimation to Register of Companies about his acceptance or refusal of the appointment.
8. The intimation given by the company shall also be attached in the Form 23B so filed by the auditor.  
9. Prepare a general meeting minutes for the general meeting held.