Companies Act, 1973 (Act No. 61 of 1973)Chapter X: AuditorsRemoval and Resignation of Auditor279. Special notice of removal for auditor |
| 1) | Special notice to the company shall be required for a resolution to be proposed at a general meeting under section 277 or at an annual general meeting under section 278 and upon receipt of notice of such a proposed resolution the company shall forthwith deliver a copy thereof to the auditor concerned. |
| 2) |
| a) | Where any such notice is given and the auditor concerned makes in respect of the proposed resolution representations (not exceeding a reasonable length) in writing to the company and requests their notification to members of the company, the company shall, unless the representations are received by it too late for it to do so- |
| i) | in any notice of the proposed resolution given to members of the company, state that such representations have been made; and |
| ii) | send a copy of the representations to every member of the company to whom notice of the meeting is sent (whether such notice is sent before or after receipt of the representations by the company). |
| b) | If a copy of such representations is not sent as aforesaid because of their being received too late or because of the company's default, the auditor may (without prejudice to his right to be heard orally) require that the representations shall be read out at the meeting. |
| c) | No copy of such representations shall be sent out and the representations need not be read out at the meeting if, on the application either of the company or of any person who claims to be aggrieved, the Court is satisfied that the rights conferred by this section are being abused to secure needless publicity for defamatory matter. |
| d) | The Court may on an application under paragraph (c) order the company's or the said person's costs to be paid in whole or in part by the auditor, notwithstanding that he is not a party to the application. |