The Board of Directors of Green Stone Limited (the company) consists of total 8 executive directors and 2 non-executive directors. 4 executive directors in collusion with the auditor of the company manipulated the accoun

Given problem is based on removal of auditor by Tribunal in event of fraud u/s 140(5) of the Companies Act 2013. As per the provisions of Section 140(5) of the Companies Act, 2013 , the Tribunal may either Suo motu or on an application made to it by the Central Government or by any person concerned, if it is satisfied that the auditor of a company has whether directly or indirectly acted in a fraudulent manner, or abetted or colluded in any fraud by, or in relation to, the company or its directors or officers, it may, by order, direct the company to change its auditors. Section further states that if the application is made by the Central Government and the Tribunal is satisfied that any change of the auditor is required, it shall within 15 days of receipt of such application, make an order that he shall not function as an auditor and the Central Government may appoint another auditor in his place. An auditor, whether individual or firm, against whom final order has been passed by the Tribunal under this section shall not be eligible to be appointed as an auditor of any company for a period of five years from the date of passing of the order and the auditor shall also be liable for action under section 447. Based upon the above provision. we may conclude as follow: - This Section authorizes the Tribunal to pass order for directing the company to change the auditor. However, the Tribunal shall not directly remove the auditor. The application is tenable as it is made by the persons concerned.