Removal Of Statutory Auditor

Whether non ratification of statutory auditor is removal of statutory auditor

In this Flash editorial, the author begins by referring the provisions of Section 139 & 140 of Companies Act, 2013 relating to ratification of Auditor in every Annual General Meeting & Removal of auditor. The main thrust of the article, however, is upon the “indirectly removal of Auditor through Non Ratification of Auditor” and most recent case laws decided by the Hyderabad Bench of National Company Law Tribunal in the case of SPC & Associates, Chartered Accountants and DVAK & Co.. Questions arise whether principally it is natural justice to remove the statutory auditor during his term by non-ratification in Annual General Meeting.