Appointment of internal auditors

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2015 As per Companies Act 2013 and rules made thereunder, the specified companies are required to appoint Internal Auditors in a Board Meeting. however, in case of few companies, the Internal Auditor was appointed during last year i.e. before March 2013 without any board resolution, who is continuing as Internal Auditor for Current Financial Year as well. Now whether the Company re-appoint Internal Audit again in current year or his continuation without board resolution will be sufficient compliance.

c.bakshi

c.bakshi (Expert)
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19 February 2015 As per Section 138 of the act, Till the time nothing has been imposed restriction on reappointment of internal auditor again. Rules are also talks about eligible companies to mandatory have Internal Auditor

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2015 But whether reappointment has to be done in a board meeting or appointment during earlier years (if appointed for say 3 years) will continue.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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20 February 2015 Section 179(3)(k) read with rule 8(5) of Companies (Meetings of Board and its Powers) Rules, 2014, prescribes few more matters which shall be exercised, on behalf of the company, by the Board of Directors, only by means of resolutions passed at meetings of the Board which include appointment of internal auditor.

You must appoint/re-appoint internal auditor by way of passing Board resolution.

You have to file e-Form MGT-14 for the same with certified copy of board resolution.

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