Statutory auditors (Corporate Law)

This query is : Resolved

Author : Anonymous

( Author )
16 July 2012

Dear All,

One Ltd. company was incorporated on 2/4/2012 and within first one month a statutory auditor was appointed by the company in board meeting.

Now the auditor is not wlling to continue due to personal reasons.

Now can i appoint another auditor in his place in Board meeting or i have to call an EGM?

What are the formalities to be complied with? Do i need to give a special notice?
Plz specify in detail.

Plz help.

neeraj

( Expert )
16 July 2012

If auditor is resigning by his own u can appoint director in BOD meeting only by passing a bod resolution.

Ajay Mishra

( Expert )
16 July 2012

Hi

If a statutory auditor is resigning his office by way of resignation, then you will appoint new auditor in place of retiring auditor in general meeting under section 224(6) of the Companies Act, 1956.

mitesh

( Expert )
16 July 2012

The Board of directors has no power to fill a casual vacancy arising by resignation of the Auditor. It can be filled only at a general meeting. To fill the casual vacancy arising by resignation of the Auditor, an EGM shall be convened. No special notice u/s 225 is necessary in this case. The appointment shall be made by passing an ordinary resolution.

Formalities to be complied with-
1. The certificate to be obtained from appointing auditor u/s 224(1)
2. Intimation to be given by the company to appointing auditor within 7 days of appointment
3. Auditor so appointed shall file Form 23B within 30 days of his appointment.