Resignation of Auditor (ADT-3)
Resignation of Auditor
₹
1,500/-*
₹
- Statutory Fees including Additional Fees, Penalty in course of Filing of ADT-3 is not included in the above amount.
- Any advice given to the Client is only an opinion based on our knowledge of the Client’s particular circumstances.
- The client will be responsible for verifying the information contained in such returns and/or filings prior to approving/signing such return/filing.
- Fees Should be paid according to conversation held between the Legal Parivar Team and Client.
FORM ADT-3
According to Section 140(2) of the Companies Act, 2013 an auditor is required to submit a resignation statement, as outlined in the Rules, to the Registrar within 30 Days from the date of resigning. The Rules provide that an auditor should file the application Form ADT-3 to the Registrar after resigning from the company.
The auditor must specify the reasons and pertinent details for resigning in the statement, emphasizing the importance of promptly notifying the Registrar. Failure to do so results in penalties under the Act.
If the auditor neglects to submit the resignation statement, a penalty of Rs 50,000 or an amount equivalent to his remuneration, whichever is lower, shall be imposed. For persistent non-compliance, the auditor may face an additional penalty of five hundred rupees for each day of the ongoing failure, capped at a maximum of five lakh rupees.
What is the procedure for an auditor’s resignation?
Procedure for an auditor’s resignation:
- The auditor has to submit the resignation letter and form ADT-3 to the company and ROC.
- A board meeting will be organised with all the directors to effect the resignation.
- The company should obtain a consent letter from the new auditor firm under Section 139 and 141 of the Companies Act 2013.