An auditors may resign from office before end if term by giving written notice to the company. The appointment will end on the date when the notice was deposited at the registered office of the company or on a later date specified by the auditor in the notice. The notice will only be effective if it is accompanied by a statement of circumstances which details of any relevant circumstances relating to the resignation that the auditor thinks should be brought to the attention of the members or creditors of the company. If the auditor has no circumstances to report, the statement must state this.
Once the notice has been received it is the company's responsibility to a copy of it to the Registrar of companies within 14 days.
The auditor may also request that the extraordinary general meeting be called to consider the circumstances connected with the resignation by depositing a signed requisition with the resignation. The meeting must be arranged within 21 days, for a date within 28 days of it being convened, totaled of 49 days. Failure to do so will render the directors liable to a fine.
The auditor may also request that a written statement relating to the resignation be sent to all shareholders (also commonly referred to as members) prior to the extraordinary meeting. Such a statement may also be sent prior to the general meeting at which the auditor's term of office would have expired or where a replacement auditor is to be appointed. The auditor also has the right to attend and be heard at either of these meetings.
If the statement is received too late to be included in the notice to the general meeting, the auditor can require the statement to be read out at the meeting.
If an auditor does not seek reappointment at the general meeting, at the end if his term of appointment, this does not constitute resignation and no notice is required to be deposited at the company's registered office. However, a statement of circumstances is still required.
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