NCLT removes auditor for the first time under new Companies Act

The NCLT has removed the statutory auditor of Zen Shaving and allowed the Ministry of Corporate Affairs to appoint an independent director in his place

The National Company Law Tribunal (NCLT) has removed the statutory auditor of Zen Shaving and allowed the Ministry of Corporate Affairs (MCA) to appoint an independent director in his place. This is the first time the NCLT has passed such an order against an auditor under the Companies Act, 2013.

Metals and chemicals manufacturer Zen Shaving had applied to be listed for an initial public offering (IPO) on the Pune Stock Exchange.

In its order, the NCLT noted that family members of the auditor, Mukesh Maneklal Choksi, are shareholders of Zen Shaving. Also, the auditor had not examined the company’s books before