Sec 281 & 282: Resignation of auditor

Circumstances / how an auditor can resign from his appointment:

1. Voluntary resignation by written notice

   • Under Section 281(1) CA 2016, the auditor of a company may resign at any time by giving a written notice of resignation to the company at its registered office. Invest Malaysia

2. When the resignation becomes effective

   • Under Section 281(2) CA 2016, the auditor’s term of office ends either:

     • 21 days after the notice is given, or
     • on a later date specified in the notice of resignation. Invest Malaysia+1

3. (For public companies)

   • If the resigning auditor believes there are issues that shareholders should know, the auditor can resign and submit a statement of circumstances, and can require the directors to call a general meeting to explain those circumstances. This right is given in Section 283(1)–(3) CA 2016. Invest Malaysia
     
     

Short notes

1. (s.281(1) CA 2016) - The auditor may resign by giving written notice to the company 
2. Sec 282 (1) - the company shall send a copy of the notice to the Registrar within 7 days from the received date. 
3. (s.281(2) CA 2016) - The resignation takes effect after 21 days or on a later stated date 
4. (s.283 CA 2016) - For a public company, the resigning auditor can also require the company to call a meeting to explain the reasons for resignation