Notice for Resignation of Auditors - Section 140(2)
Section: Section 140(2)
Purpose: To inform the Registrar of Companies (ROC) and the shareholders of the company about the resignation of the auditor before the completion of their tenure.
Applicability: All companies registered under the Companies Act, 2013 or earlier acts.
Timeline: Within 30 days of receiving the resignation letter from the auditor.
Exemption: No exemption is provided under the Act.
Penalty: If a company fails to file the notice of resignation of the auditor within the specified timeline, it will attract a penalty of Rs. 10,000. The penalty may increase to Rs. 1 lakh if the company fails to file the notice even after 6 months from the resignation.
Due date: Within 30 days of receiving the resignation letter from the auditor.
Forms: The notice of resignation of auditors needs to be filed in e-Form ADT-3.
Reporting authority: The Registrar of Companies (ROC) of the state where the company is registered.
Other details: The notice must mention the reasons for resignation and a copy of the resignation letter must be attached with the notice. The company must also appoint a new auditor within 30 days of the resignation and file a notice of the appointment in e-Form ADT-1.
