Section 411 CAMA 2020
Section 411 Companies and Allied Matters Act is about Supplementary provisions relating to auditors. It is under Chapter 15 (Audit) of the Act.
(1) A special notice is required for a resolution at a general meeting of a company—
(a) appointing as auditor a person other than a retiring auditor ;
(b) filling a casual vacancy in the office of auditor ;
(c) re-appointing as auditor a retiring auditor who was appointed by the directors to fill a casual vacancy ; or
(d) removing an auditor before the expiration of his term of office.
(2) On receipt of notice of such an intended resolution as is mentioned in subsection (1), the company shall forthwith send a copy of it—
(a) to the person proposed to be appointed or removed ;
(b) in a case within subsection (1) (a), to the retiring auditors ; and
(c) in a case within subsection (1) (b) or (c), the casual vacancy was caused by the resignation of an auditor, to the auditor who resigned.
(3) Where notice is given of such a resolution as is mentioned in subsection(1) (a) or (d) and the retiring auditor (or, the auditor proposed to be removed)makes, with respect to the intended resolution, representations in writing to the company not exceeding a reasonable length, and requests their notification to members of the company, the company shall (unless the representations are received by it too late for it to do so)—
(a) in any notice of the resolution given to members of the company,state the fact of the representations having been made ; and
(b) send a copy of the representations to every member of the company to whom notice of the meeting is or has been sent.
(4) If a copy of any such representations is not sent out as required by subsection (3) because they were received too late or because of the company’s default, the auditor may (without prejudice to his right to be heard orally)require that the representations be read out at the meeting.
(5) Copies of the representations need not be sent out and the representations need not be read out at the meeting if, on the application either of the company or of any other person claiming 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 the application to be paid in whole or in part by the auditor,notwithstanding that he is not a party to the application.
