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of <h1>Removal or resignation of company auditors u/s 139: approval, hearing, notices, filings, penalties, and fraud-based disqualification rules</h1> An auditor appointed under section 139 may be removed before expiry of term only by a company special resolution after prior Central Government approval, and the auditor must be given a reasonable opportunity of being heard, restricting premature removal to a prescribed and procedurally safeguarded process. An auditor who resigns must, within 30 days, file a prescribed statement of reasons with the company and the Registrar, and additionally with the C&AG for specified companies, ensuring formal disclosure and regulatory intimation of resignation. Failure to file attracts a penalty of ?50,000 or an amount equal to the auditor's remuneration (whichever is less), plus a continuing daily penalty capped at ?2,00,000. Special notice and circulation/reading of the retiring auditor's representation are mandated for certain AGM auditor-appointment resolutions, and the Tribunal may order change of auditor and impose a five-year ineligibility where fraud is found.
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