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What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?
  • a)
    To allow the retiring auditor to reappoint themselves without any opposition.
  • b)
    To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.
  • c)
    To allow the retiring auditor to extend their tenure beyond the prescribed limits.
  • d)
    To grant the retiring auditor the right to veto the appointment of a new auditor.
Correct answer is option 'B'. Can you explain this answer?
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What is the purpose of a "special notice" in the context of ...
A "special notice" is required in the context of removing an auditor before the expiry of their term to provide the company with an opportunity to appoint a new auditor without the consent of the retiring auditor. This notice allows the company's shareholders to propose a resolution at an annual general meeting to appoint a new auditor or to expressly state that the retiring auditor will not be re-appointed. It ensures transparency and allows for a smooth transition in case the company wishes to change its auditor before the end of their term.
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What is the purpose of a "special notice" in the context of ...
Explanation:

Purpose of a "Special Notice" in Removing an Auditor:
- To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent:
When a company wants to remove an auditor before the expiry of their term, a special notice is required to be given to the company by the shareholders. This special notice allows the company to appoint a new auditor without the retiring auditor's consent. It ensures that the process of removing the auditor is fair and transparent.
- The special notice is a crucial step in the process of removing an auditor, as it gives the company the opportunity to appoint a new auditor who may better suit their needs or requirements.
- By providing the company with the chance to appoint a new auditor without the retiring auditor's consent, the special notice helps maintain the independence and integrity of the audit process.
- Overall, the purpose of the special notice in removing an auditor is to ensure that the company has the ability to make changes to its audit arrangements in a manner that is in the best interests of the company and its stakeholders.
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What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?a)To allow the retiring auditor to reappoint themselves without any opposition.b)To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.c)To allow the retiring auditor to extend their tenure beyond the prescribed limits.d)To grant the retiring auditor the right to veto the appointment of a new auditor.Correct answer is option 'B'. Can you explain this answer?
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What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?a)To allow the retiring auditor to reappoint themselves without any opposition.b)To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.c)To allow the retiring auditor to extend their tenure beyond the prescribed limits.d)To grant the retiring auditor the right to veto the appointment of a new auditor.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?a)To allow the retiring auditor to reappoint themselves without any opposition.b)To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.c)To allow the retiring auditor to extend their tenure beyond the prescribed limits.d)To grant the retiring auditor the right to veto the appointment of a new auditor.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?a)To allow the retiring auditor to reappoint themselves without any opposition.b)To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.c)To allow the retiring auditor to extend their tenure beyond the prescribed limits.d)To grant the retiring auditor the right to veto the appointment of a new auditor.Correct answer is option 'B'. Can you explain this answer?.
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