APPOINTMENT OF AUDITOR OTHER THAN RETIRING AUDITOR

 Appointment of Auditor Other Than Retiring Auditor

Section 140(4) lays down procedure to appoint an auditor other than retiring auditor who was removed-

(1) Special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed, except where the retiring auditor has completed a consecutive tenure of five years or as the case may be, ten years, as provided under sub-section (2) of section 139.

(2) On receipt of notice of such a resolution, the company shall forthwith send a copy thereof to the retiring auditor.

(3) Where notice is given of such a resolution and the retiring auditor makes with respect thereto representation in writing to the company (not exceeding a reasonable length) and requests its notification to members of the company, the company shall, unless the representation is received by it too late for it to do so,-

    (a) in any notice of the resolution given to members of the company, state the fact of the                           representation having been made; and

    (b) send a copy of the representation to every member of the company to whom notice of the                meeting is sent, whether before or after the receipt of the representation by the company and if a          copy of the representation is not sent as aforesaid because it was received too late or because of          the company’s default, the auditor may (without prejudice to his right to be heard orally) require          that the representation shall be read out at the meeting.

Students may note that if a copy of representation is not sent as aforesaid, a copy thereof shall be field with the Registrar.
Curtailing right of the auditor regarding circulation of copy of representation in the case of appointment of auditor other than retiring auditor under section 140(4) of the companies act, 2013:
If the Tribunal is satisfied on an application either of the company or of any other aggrieved person that the rights conferred by section 140(4) of the Companies Act, 2013 are being abused by the auditor, then, the copy of the representation may not be sent and the representation need not be read out at the meeting.