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MikeLittle.
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ilham9089
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How do private companies remove auditors or directors? I thought written resolutions could be ordinary or special so why can’t companies pass written ordinary resolutions with special notice?
MikeLittle
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Because you have to give the auditor / director about to be removed the opportunity to ‘fight her / his corner’ and explain why s/he feels that her / his removal is against the company’s interests
OK?
ilham9089
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So how do private companies remove them then?
MikeLittle
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Private companies and auditors? A rare combination!
However, it is a possible combination and , of course, private companies have directors
First thing to remember that, in practice, it’s most commonly the case that private companies’ directors will be sole directors or family or friends. For a sole director, the issue never arises
For family and friends, it’s the break down of the relationship that causes the need for removal … and that’s the reason why you should NEVER enter into a business relationship where the power is evenly split!
As for the technicalities … as per large companies! Ordinary resolution with special notice
OK?
ilham9089
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