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Removal of an auditor

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Removal of an auditor

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 23, 2017 at 12:44 pm #387587
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Hi sir, I just want to check if my understanding of the removal of an auditor is correct.

    To remove an auditor,

    – The director must forward a ordinary resolution at the general meeting, of which special notice has been given.
    – Details of the special notice must be sent to the auditor and the Secretary of State.
    – The auditor may then, within the 7 days, submit a statement of circumstance to the company and request that a copy be sent to all the shareholders and have it read out at the general meeting.

    – At least 51%(simple majority) of the shareholders must vote in favour to remove the auditor
    -Once the auditor is removed, the company may, by passing a special resolution at the same meeting, of not less than 75% of the voting members, appoint another auditor.

    Am I correct sir ?

    May 23, 2017 at 10:04 pm #387677
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    Seems a lot of detail. It looks about right except, as far as I know, in the UK only an ordinary resolution is needed to appoint an auditor (not 75% which is for a special resolution).

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  • The topic ‘Removal of an auditor’ is closed to new replies.

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