Corporate and Other LawsMCQQuestion 12560 of 300
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Under Section 140(1) of the Companies Act, 2013, the auditor appointed under Section 139 may be removed from his office before the expiry of his term only by:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — A Special Resolution passed by the company after obtaining the previous approval of the Central Government (Form ADT-2)

All Options:

  • AA Special Resolution passed by the company after obtaining the previous approval of the Central Government (Form ADT-2) ✓
  • BAn Ordinary Resolution passed in general meeting without any external approval
  • CA unanimous Board Resolution passed by the Board of Directors
  • DAn order from the Institute of Chartered Accountants of India (ICAI)

Detailed Solution & Explanation

Correct Answer: Option **A** (A Special Resolution passed by the company after obtaining the previous approval of the Central Government (Form ADT-2)) **Statutory Provision (Section 140 - Removal, Resignation of Auditor and Giving of Special Notice):** Section 140(1) mandates that the auditor may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf as per Rule 7. Therefore, Option A is the correct legal position under the ICAI curriculum.

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