A company auditor can be removed before expiry of his term by A. State Government B. Board of Directors C. Shareholders D. Central Government
Question
A company auditor can be removed before expiry of his term by A. State Government B. Board of Directors C. Shareholders D. Central Government
Solution
A company auditor can be removed before the expiry of his term by the shareholders. This is typically done through a resolution at a general meeting, where the shareholders vote on the decision. The process usually involves the following steps:
-
A special notice is required for a resolution at a company's general meeting to remove an auditor before the expiry of his term.
-
On receipt of the notice of the resolution, the company must immediately send a copy to the auditor who is to be removed.
-
The auditor who is to be removed is given a chance to make representations in writing to the company.
-
The auditor can request that the company notify its shareholders of his representations.
-
The shareholders then vote on the resolution at a general meeting. If the resolution is passed, the auditor is removed from his position before the expiry of his term.
So, the correct answer is C. Shareholders.
Similar Questions
The group which has the legal responsibility for removal of the auditor is:Group of answer choicesmanagementthe board of directorsthe audit committeethe shareholders
The board of directors shall appoint the first auditor of a company A. Within one month of incorporation of the company B. Within one month of completion of capital subscription state of the company C. Within one month of the commencement of the business of the company D. Within one month of the promotion of the company
Any director or trustee of a corporation may be removed from office by a vote of the stockholders holding or representing at least two-thirds (2/3) of the outstanding capital stock, or in a non-stock corporation, by a vote of at least two-thirds (2/3) of the member entitled to vote.Group of answer choicesTrueFalse
when there is a resolution to remove an auditor, a written notice of the intention to move the resolution must have been given to the company not less than........................ before the Annual General Meeting A. 30 B. 14 C. 35 D. 21 E. 40
The Accounting firm appointed to act as auditors can also provide the following services EXCEPT A. Taxation B. Systems advisory C. Executive accounting functions D. Accounting E. Share valuations
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.