# Removal of Auditor Before Expiry of Term
## The Principle First
An auditor is not a casual employee. Removing him mid-term is a serious step because the auditor protects shareholder interest. Therefore the Act builds in three safeguards:
1. Reasonable opportunity of being heard (Audi Alteram Partem — natural justice).
2. Central Government approval (an external check).
3. Shareholder approval by Special Resolution (a 75% supermajority).
All three must be satisfied.
## Step-by-Step Procedure
### Step 1 — Board Resolution
The Board passes a Board Resolution proposing removal.
### Step 2 — Application to Central Government
Within 30 days of passing the BR, an application in Form ADT-2 is made to the Central Government (power delegated to Regional Director).
The CG's approval must be obtained.
### Step 3 — Special Resolution
A Special Resolution must be passed at a general meeting held within 60 days of receipt of CG's previous approval.
### Throughout — Opportunity of Being Heard
The auditor must be given a reasonable opportunity of being heard before removal.
## Timeline Summary
| Event | Time Limit |
|---|---|
| Application to CG after BR | Within 30 days |
| SR after CG approval | Within 60 days |
| Form | ADT-2 |
| Authority | RD (delegated by CG) |
## Why Both CG and SR?
CG approval is a regulator-level safeguard against politically or strategically motivated removals. SR is the owner-level confirmation. Together they make removal a costly and deliberate act.