How can a company remove an auditor?
The members of a company may remove an auditor from office at any time during their term of office, or decide not to re-appoint the auditor for a further term. They must give the company 28 days’ notice of their intention to put to a general meeting a resolution to remove the auditor, or to appoint somebody else. In the case of a written resolution of a private company to appoint somebody else (not to remove an auditor, as this must be done at a general meeting), the company has 28 days instead of the usual 21 days to circulate the resolution. The company must send a copy of the notice of the intended resolution to the auditor, who then has the right to make a written response and require that the company sends it to the company's members, and to speak at the meeting where the resolution is to be considered.
Although a company may remove an auditor from office at any time, the auditor may be entitled to compensation or damages for termination of appointment.
If an auditor wishes to resign, he must give written notice to the company which includes depositing a statement at the company's registered office setting out any circumstances connected with his ceasing to hold office that he considers should be brought to the attention of the members or creditors of the company. Even if there are no circumstances that need to be brought to the attention of the members and creditors, a statement to that effect must still be deposited. The company will need to notify Companies House of the resignation and if there are circumstances attached to his resignation, the company must either send a copy of the statement within 14 days to all persons entitled to be sent copies of the accounts or apply to the court. If the auditor resigns or is removed during his term of office, the company must notify the “appropriate audit authority”.