Section 413 CAMA 2020
Section 413 Companies and Allied Matters Act is about Right of resigning auditor to requisition company meeting. It is under Chapter 15 (Audit) of the Act.
(1) Where an auditor’s notice of resignation contains a statement under section 412 (2) (b), there may be deposited with the notice a requisition signed by the auditor calling on the directors of the company forth with to convene an extraordinary general meeting of the company for the purpose of receiving and considering such explanation of the circumstances connected with his resignation as he may wish to place before the meeting.
(2) Where an auditor’s notice of resignation contains such a statement,the auditor may request the company to circulate to its members before—
(a) the general meeting at which his term of office would otherwise have expired ; or
(b) any general meeting at which it is proposed to fill the vacancy caused by his resignation or convened on his requisition, a statement in writing (not exceeding a reasonable length) of the circumstances connected with his resignation.
(3) If a resigning auditor requests the circulation of a statement by virtue of subsection (2), the company shall (unless the statement is received by it too late for it to comply)—
(a) in any notice of the meeting given to members of the company, statethe fact of the statement having been made ; and
(b) send a copy of the statement to every member of the company to whom notice of the meeting is or has been sent.
(4) If the directors do not within 21 days from the date of the deposit ofa requisition under this section proceed to convene a meeting for a day not more than 28 days after the date on which the notice convening the meeting is given, every director is liable to a penalty as the Commission shall specify inits regulations.
(5) If a copy of the statement mentioned in subsection (2) is not sent out as required by subsection (3) because it was received too late or because of the company’s default, the auditor may (without prejudice to his right to beheard orally) require that the statement be read out at the meeting.
(6) Copies of a statement need not be sent out and the statement need not be read out at the meeting if, on the application either of the company or of any other person who claims to be aggrieved, the Court is satisfied that the rights conferred by this section are being abused to secure needless publicity for defamatory matter, and the Court may order the company’s costs on suchan application to be paid in whole or in part by the auditor, notwithstanding that he is not a party to the application.
(7) An auditor who has resigned his office is entitled to attend any such meeting as is mentioned in subsection (2) (a) or (b) and to receive all notices of and other communications relating to any such meeting which any member of the company is entitled to receive, and to be heard at any such meeting which concerns him as former auditor of the company.
