Change of auditor and FORM ADT-3

Change of auditor

According to sub Section 89(1) of Section 139   of the Companies Act 2013,  auditor can be changed in following three ways: 

1. its shareholders does not ratify the existing auditors in the Annual General Meeting of the companies then, Board of directors may appoint another auditor  by holding a board meeting  within 30 days.  it shall be appointment to fill the casual vacancy and the auditor  shall hold office till the conclusion of the next Annual General Meeting.  company is required to file ADT 1 to ROC for intimation of appointment.
2. If auditors resigns then hold a board meeting and appoint auditor within 30 days and get it approved in an  extraordinary General Meeting of the company and file ADT 1 to the registrar of the companies.
3. According to Section 142 an auditor can be removed from his office by giving a special notice by any member of the company before expiry of his term and by passing a special resolution after obtaining the previous approval of Central Government in that behalf.  Central Government means Regional Director.  auditor shall be given a reasonable opportunity to be heard in the Annual General Meeting of the company.

   Intimation to ROC-An auditor appointed under section 130 of Companies Act 2013 can resign after his or her appointment.  When an auditors ceases to hold office after resignation as company auditor ,the auditor is under legal obligation under section 140 of Companies Act 2013 read with Rule 8 Of Companies (Audit And Auditors)Rrules 2014 to notify Registrar Of Companies within 30 days from the date of resignation by filing a statement in the prescribed FORM ADT 3.

   Intimation to The Company-Before filing the FORM ADT 3 ,auditor is also required to intimate his resignation to the company in writing.

   Attachments-While filing FORM ADT 3 with registrar of companies and intimating to the company of his resignation, the auditor is required to mention the date of resignation , reason of resignation and any other files relevant to the resignation.

   While filing FORM ADT 3 , following documents are attached with FORM ADT 3
   Scan copy of resignation letter sent to company by auditor
   Any other document in support of resignation

   Time Limit-FORM ADT 3  is to be filed within 30 days from the effective date of resignation mentioned in resignation letter or the date of receipt of resignation letter by the company.

   Procedure for resignation of auditor-

1. Send a resignation letter to company stating the reasons of resignation, date of resignation and other relevant facts related to resignation.
2. Upload FORM ADT 3 with auditor’s dsc within 30 days from the date of resignation