PROCEDURES FOR AUDITOR'S RESIGNATION

PROCEDURES FOR AUDITOR'S RESIGNATION ARE:-

a)           An auditor may resign by depositing a notice in writing to that effect at the register office. This is not effective unless accompanied by a statement of circumstances.

ü   The company must send a copy of the notice of resignation to the registrar of companies within 14 days on pain of the fine. Thus, any person searching the file will have notice of the resignation.

b)          The statement of circumstances should contain a statement of any circumstances (e.g. fraudulent trading), which he/she considers should be brought to the attention of members or if he/she considers that there no such circumstances than a statement that there are none. The auditor can cease to be - auditor by simply not seeking re-election. However in that case he must still deposit a statement of circumstance and there are times limited for this.

ü   If the statements of circumstances contain matters, which the auditor consider should brought to the attention of the members or creditors, then the company must within 14 days receipts of it send a copy to all persons entitled to receive copies of the accounts or apply to court.

ü   Defamatory matter may not be published by court or otherwise the statement must be sent out

ü   The auditor must send his statement to the registrar. Rights and duties of resigning auditor.

ü   The auditor may deposit with his notice of resignation and his statement of the circumstances, a notice calling on the company to convene an extra ordinary meeting.

The directors must call such meeting within 21 days on pain of fine and must send out copies of the statement and if they fail to do so the auditor c- n require that the statement be read at the meeting.