ADT-1 Auditor appointment issue

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AJAY GUPTA (Querist)

04 August 2016 Casual vacancy in a pvt co due to resignation of auditor in August 2015. New auditor being appointed after 11 months in July 2016 for the year 2015-16. Now the company if file ADT-1 showing resignation and appointment on above dates is there any violation and what is the remedy. pls suģgest

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CS Mitesh Mehta

CS Mitesh Mehta (Expert)

04 August 2016 If the vacancy has arisen due to resignation of auditor then such appointment shall also be approved by the company at a general meeting convened within 3 months of the recommendation of the Board. -Section 139(8) of the Companies Act, 2013.

If any of the provisions of sections 139 to 146 (both inclusive) is contravened, the company shall be punishable
with fine which shall not be less than Rs. 25,000 but which may extend to Rs. 5,00,000 and every officer in default
shall be punishable with imprisonment for a term which may extend to 1 year or with fine which shall not be less
than Rs. 10,000 but which may extend to Rs. 1,00,000 or with both.- Section 147 of the Companies Act, 2013

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