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