The Classic Partners LLP
Auditor Resignation
Compliance support when a statutory auditor resigns under Section 140 of the Companies Act, 2013 — including filing Form ADT-3, filling the resulting casual vacancy, and appointing a successor auditor with Form ADT-1.
Handle an Auditor ResignationWhat is Auditor Resignation?
When a statutory auditor resigns, the resignation must be properly documented and reported. The resigning auditor files a statement in Form ADT-3 with the company and the Registrar of Companies within thirty days, indicating the reasons and other relevant facts.
The resignation creates a casual vacancy that must be filled so that audit coverage continues. The Board appoints a successor, the members approve the appointment within three months where required, and the new Auditor Appointment is intimated to the Registrar in Form ADT-1.
Who Needs Auditor Resignation Support?
- Companies whose auditor has resigned during the financial year.
- Auditors who need to file Form ADT-3 correctly and on time.
- Companies filling a casual vacancy and appointing a successor auditor.
- Companies ensuring there is no compliance gap in audit coverage.
- Companies documenting the reasons and handover for their records.
Our Auditor Resignation Services
Form ADT-3 Filing Support
Assistance to the resigning auditor in preparing and filing Form ADT-3.
Casual Vacancy Compliance
Handling the casual vacancy created by the resignation as the Act requires.
New Auditor Appointment
Identifying and appointing a successor auditor without delay.
Form ADT-1 for the Successor
Filing the intimation for the new auditor with the Registrar of Companies.
Board and Shareholder Approvals
Drafting the resolutions needed to fill the vacancy.
Transition Documentation
Recording the resignation, reasons, and handover for the company's records.
Steps After an Auditor Resigns
- Obtain the resignation letter from the outgoing auditor.
- File Form ADT-3 with the Registrar within thirty days of resignation.
- Convene a Board meeting to consider filling the casual vacancy.
- Obtain shareholder approval for the successor where required.
- Appoint the successor auditor and file Form ADT-1.
- Complete handover and update the company's records.
Why Choose The Classic Partners
- Clear handling of both the resignation filing and the successor appointment.
- Coordinated with Auditor Appointment so a successor is in place quickly.
- Timely Form ADT-3 and Form ADT-1 filings to avoid penalties and gaps.
- Transparent fees and a dedicated point of contact, delivered by Chartered Accountants in Mumbai serving clients across India.
Related Compliance Services
- Auditor Appointment Services — Appoint your statutory auditor and file Form ADT-1 on time.
- Auditor Rotation Services — Rotate auditors within the permitted tenure under Section 139(2).
- Board Meeting Services — Run board meetings with notice, quorum, and SS-1 compliant minutes.
Frequently Asked Questions
What is Form ADT-3?
Form ADT-3 is the statement a resigning auditor files to record the resignation with the company and the Registrar of Companies, setting out the reasons and other facts relevant to the resignation.
Within how many days must an auditor file Form ADT-3 after resigning?
A resigning auditor is generally required to file Form ADT-3 within thirty days from the date of resignation.
Who fills the casual vacancy caused by an auditor's resignation?
A casual vacancy caused by resignation is filled by the Board of Directors, and the appointment is then approved by the members of the company within three months.
Within what time must the casual vacancy be filled?
Where the vacancy arises from resignation, the appointment made by the Board must be approved by the members within three months of the Board's recommendation.
What are common reasons for an auditor resigning?
Auditors may resign for reasons such as a change in the audit relationship, conflicts of interest, capacity constraints, or other professional considerations, which are recorded in Form ADT-3.
Does the company need to file any form for the new auditor?
Yes. After appointing a successor auditor, the company files Form ADT-1 with the Registrar of Companies to intimate the new appointment.
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