Auditor exits need more care than routine vendor changes. Section 140 governs removal, resignation and special notice, and the compliance risk rises when audit work, financial statements or unresolved issues are pending.
Section 140 states that an auditor appointed under Section 139 may be removed before expiry of term only by special resolution of the company, after obtaining previous approval of the Central Government in the prescribed manner. It also covers resignation by auditor.
| Item | Control |
|---|---|
| Resignation letter / removal proposal | Capture reason and effective date clearly. |
| Board/shareholder process | Check special resolution / approval route where applicable. |
| ADT-3 / relevant filing trail | Preserve filed form and acknowledgement. |
| Pending audit handover | Document books, queries and workpapers status. |
| Communication to incoming auditor | Ensure professional handover and independence checks. |
This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.
Section 140 covers removal, resignation of auditor and special notice.
No. Section 140 sets a special-resolution and approval route for removal before expiry of term.
Yes. Pending audit queries, books and filings should be tracked during auditor transition.