17 June 2013
A public company was incorporated in Sept 2012 and got its cob n October 2012. Afterwards in the board meeting auditor was appointed for the financial yr 2012-13 and form 23B in respect of the same has been filed by the auditor.No statutory meeting has been held till now. 1. can the directors apply for extension for holding statutory meeting? if yes what is the procedure? 2. Directors (holding majority shares) want to remove the auditor whom they have previously appointed even for the financial yr 2012-13 on the ground of non conducting of statutory meeting and auditors outstation residence. They want a new auditor to sign the statutory report as well. Is this possible? Kindly tell the best possible solution to cater this situation.
1. I dont think there is an option of seeking an extension for holding of the Statutory Meeting..you may have to pay a fine
2. The Board has no power to remove the first auditor, and he can be removed only in a General Meeting of the Company. In your case, since the Directors hold a majority stake, you can call an EGM and Remove the Auditor.
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