What type of resolution is needed for the removal of an auditor?

The removal of an auditor requires an ordinary resolution with special notice. This means that shareholders must be informed in advance of their intention to remove the auditor, providing them the opportunity to consider the decision and, if necessary, prepare to vote accordingly.

Special notice typically involves giving at least 28 days' notice of the intention to remove an auditor before the annual general meeting. This amount of notice allows for proper transparency and gives all shareholders a fair chance to participate in the decision-making process. The requirement for an ordinary resolution means that the decision is made by a straightforward majority vote at the meeting, ensuring that the will of the majority of shareholders is reflected in the outcome.

This process is designed to balance the rights of the shareholders with the authority and professional standing of the auditors, ensuring that any decision to remove an auditor is made thoughtfully and with adequate notice.