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A company auditor can be removed before expiry of his term by A. State Government B. Board of Directors C. Shareholders D. Central Government

Question

A company auditor can be removed before expiry of his term by A. State Government B. Board of Directors C. Shareholders D. Central Government

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Solution

A company auditor can be removed before the expiry of his term by the shareholders. This is typically done through a resolution at a general meeting, where the shareholders vote on the decision. The process usually involves the following steps:

  1. A special notice is required for a resolution at a company's general meeting to remove an auditor before the expiry of his term.

  2. On receipt of the notice of the resolution, the company must immediately send a copy to the auditor who is to be removed.

  3. The auditor who is to be removed is given a chance to make representations in writing to the company.

  4. The auditor can request that the company notify its shareholders of his representations.

  5. The shareholders then vote on the resolution at a general meeting. If the resolution is passed, the auditor is removed from his position before the expiry of his term.

So, the correct answer is C. Shareholders.

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