Resignation
of an Auditor Section
365 of CAMA (Companies and Allied Matters Act of Nigeria CAP C20 LFN 2004)
provides for the resignation of the Auditor as follows:
a) An auditor of
a company may resign his office by depositing a notice in writing to that
effect at the company’s registered office and such notice shall operate to
bring his term of office to an end on the day on which the notice is deposited
or on such later date as may be specified in it;
b) An auditor’s notice of
resignation shall not be effective unless it contains either a statement to the
effect that there are no circumstances connected with his resignation which he
considers should be brought to the notice of the members or creditors of the
company, or a statement of any circumstances as are mentioned above;
c) Where a notice is deposited at a company’s
registered office, the company shall, within 14 days, send a copy of the notice
to the Commission and if the notice contained a statement as prescribed in (b)
above, it shall be sent to all persons entitled to receive copies of the
company’s financial statements (principally the shareholders).
d) The company or
any person claiming to be aggrieved may, within 14 days of the receipt by the
company of a notice, apply to the court for an order;
e) If on such an
application the court is satisfied that the auditor is using the notice to
secure needless publicity for defamatory matter, it may, by order, direct that
copies of the notice need not be sent out; and the court may further order the
company’s costs on the application to be paid in whole or in part by the
auditor, notwithstanding that he is not a party to the application; and
f) The company
shall, within 14 days of the court’s decision, send to the Commission,
shareholders and debenture holders a statement setting out the effect of the
order (if the court makes an order), or a copy of the notice containing the
statement (if the court makes no order).
ARTICLE BY MONDAY DESMOND
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