22 August 2008
According to Section 224(6) of the Companies ACt, Casual vacancy arising due to death, disqualification or dissolution ofthe firm of auditors can be filled up by the Board of Directors. Here the term "may" has been used in the Act. Is it mean that the casual vacancy in the above case may also be filled by the Shareholders in a general meeting?
22 August 2008
Yes. Under the Act, Appointment of statutory auditors is the prirogative right of the shareholders. Only in case of first auditors and casual vacancy, the Board is authorised to appoint statutory auditors. Hence, the Shareholders ate always having right to appoint Statutory Auditors of the Company.
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