Your limited company can remove your auditor from office by resolution. For example, you are not happy with their auditor’s service. Maybe that they have issued a qualified audit report. But you think they should have issued unqualified audit report instead.
In this circumstance, your company must deliver the form AA03 to Companies House within 14 days of the resolution being passed.
Broadly, the difference between your company is removing your auditor from office and your auditor is removing themselves from office. The first one means you are sacking your auditor in simple term. The latter means your auditor is resigning.
In the event where your auditor is removing themselves from office, you must not use the Companies House form AA03 to notify Companies House.
Section 510 (3)(a) Resolution removing auditor from the office of the Companies Act 2006 states “Nothing in this section is to be taken as depriving the person removed of compensation or damages payable to him in respect of the termination of his appointment as auditor.”
In other words, your company must not use this law to remove your auditor and not pay for their work done so far.
Generally, your company must give special notice for a resolution at the general meeting of your intention to remove your auditor from office. Thereafter, send a copy of the notice to your auditor immediately.
Likewise, your auditor has the right to receive the notice of the resolution. Correspondingly, they could make representations to the shareholders in writing.
Usually, the representation is to be forwarded to shareholders. Alternatively, it may be read out in general meeting, However, if received too late, then it must be included with the notice of the meeting. Concurrently, the auditor has the right to attend and be heard at the meeting. As a matter of fact, they can be heard at any general meetings.
On the other hand, your company must send notice of the resolution to Companies House within 14 days. Just like you must deliver your confirmation statement with 14 days. At the same time, your auditor must also deposit a statement of circumstances at your company’s registered office. And also, file a copy of the statement with Companies House.