Appointment of auditor in EGM in case of casual vacancy

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SURABHI GUPTA (Querist)

25 September 2022 Auditor was appointed in EGM due to casual vaccancy, at that time ADT-1 was filled for a period 2021-22 .Do ADT 1 is need to be filled again for reappointment of same auditor for 5 years in AGM. ?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

06 July 2024 If an auditor was appointed to fill a casual vacancy in an Extraordinary General Meeting (EGM) and Form ADT-1 was filed for the period of 2021-22, and now you are reappointing the same auditor for a regular term of 5 years in the Annual General Meeting (AGM), you generally do not need to file Form ADT-1 again for the reappointment unless there are specific regulatory changes or requirements in your jurisdiction.

Here’s the typical procedure:

1. **Appointment in EGM**: When an auditor is appointed to fill a casual vacancy in an EGM, Form ADT-1 is filed to notify the Registrar of Companies (RoC) about the appointment. This form is necessary to inform the authorities about the change in the auditor's position.

2. **Reappointment in AGM**: If the same auditor is now being reappointed for a regular term (e.g., 5 years) in the AGM, you do not usually need to file Form ADT-1 again. The reappointment is covered under the initial notification, and Form ADT-1 typically covers the duration of the auditor’s term unless there are changes or the auditor's tenure is completed and a new appointment is required.

3. **Check Local Requirements**: However, regulations can vary by jurisdiction. It’s essential to check with your company secretary or legal advisor to confirm if there have been any updates or specific requirements regarding auditor appointments and filings with the RoC.

4. **Documentation and Resolutions**: Ensure that all necessary resolutions and documentation related to the reappointment of the auditor are properly prepared, passed, and recorded as per the Companies Act and your company’s Articles of Association.

In summary, unless there are changes in auditor details or specific local requirements, you typically do not need to file Form ADT-1 again for the reappointment of the same auditor in the AGM after filling a casual vacancy through an EGM. Always verify with legal or compliance professionals to ensure full compliance with applicable laws and regulations.

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