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ACCA Applied Skills · Corporate and Business Law (Global) · Other company officers

Orlen Ltd's auditor, Pavel, wishes to resign mid-term. He believes the resignation relates to concerns about the company's affairs. What must Pavel do under the usual company law rules on resignation?

The auditor resigns by written notice to the company, including a statement of any circumstances connected with the resignation that members or creditors should know about, or a statement that there are none. He need not wait for the AGM.

  1. AResign by notice to the company, accompanied by a statement of the circumstances connected with his resignation that should be brought to members' and creditors' attentionCorrect
  2. BResign without any notice or statement, since resignation is a private matter
  3. CWait until the next annual general meeting, as he cannot resign earlier

Explanation

An auditor resigns by giving notice to the company. The notice must include a statement of any circumstances connected with the resignation that should be brought to the attention of members or creditors, or a statement that there are none. There is no requirement to wait for the AGM.

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