Appoinment of an auditor

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Hareesh H Sharma (Querist)
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18 November 2009 If a auditor was appointed in an AGM and subsequently he fails to take up d appointment should d matter be referred to CG U/S 224(3) or can the company hold another meeting and appoint the auditor??

Ankur Garg

Ankur Garg (Expert)
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19 November 2009 You can not hold another meeting and appoint the auditor.

At this point of time matter should be referred to CG U/S 224(3). There is no doubt about that.

Ankur Garg

Ankur Garg (Expert)
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19 November 2009 Appointment of auditor by the Central Government (Regional Director)
Section 224(3) provides that if no auditors are appointed or re-appointed at an annual general meeting of a company, the Central Government may appoint a person to fill the vacancy. Therefore, the power of the Central Government to appoint auditors becomes exercisable when no auditors are appointed or reappointed at an annual general meeting of a company.

The Company is required to give intimation electronically to the Regional Director (Powers of the Central Government were delegated to the Regional Director) vide Notification No. GSR 288(E) dated 31st May, 1991) in new e-Form 24A prescribed by Notification No. GSR 56(E) dated 10th Feb., 2006.

Obligation has been cast on the company that within seven days of the Central Government's power u/s 224(3) becoming exercisable, it shall give a notice of that fact to that Government; and if a company fails to give such notice, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to five thousand rupees.

Hareesh H Sharma

Hareesh H Sharma (Querist)
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19 November 2009 Thanx sir, so is it the companies duty to inform the govt within 7 days after AGM??
I mean when does govt's power under sec 224(3) come into picture??Is it from the day of AGM?

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