The Board of Directors of Hub & Links Logistics Private Ltd. passed a resolution on 2nd January, 2025 to remove its statutory auditor Sundar & Co., Chartered Accountants from office before expiry of term as the q

As per section 140 of the Companies Act, 2013-The auditor appointed under section 139 of the Companies Act, 2013, may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the prior approval of Central Government in that behalf in the manner prescribed in rule 7 of the Companies (Audit & Auditors) Rules, 2014. As per rule 7, the auditor appointed under section 139 of the Act, may be removed from his office before the expiry of the term only by - (i) Obtaining the prior approval of Central Government by filling an application in Form ADT-2 within 30 days of resolution passed by the Board. (ii) The company shall hold the general meeting within sixty days of receipt of approval of the Central Government for passing the special resolution. (iii) The auditor concerned shall be given a reasonable opportunity of being heard. As Central Government approval was not obtained in this case, ordinary resolution was passed instead of special resolution and auditor was not provided an opportunity of being heard, the objection of the auditor is valid.