Auditor appointment under company law

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Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2014 An Auditor of a private limited company was appointed since 2008-09.
For how many years he can continue of the same company and how it should be mentined in the Notice to the shareholders re: auditors appointment for the year 2014-15.
Can you please illustrate the new law?
Thanks.

Shashikant Sharma

Shashikant Sharma (Expert)

06 December 2014 If paid up share capital of pvt Ltd company is less then 20 cr and borrowing & public deposit is less then Rs. 50 cr then the auditor and the company can decide the no. of years the same auditors will continue.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2014 Thanks for the reply,Sir.
The capital of the company is Rs.40 lacs, can you suggesthow it should be mentioned in the Notice to the shareholders for AGM.

Shashikant Sharma

Shashikant Sharma (Expert)

06 December 2014 Appointment of Statutory Auditors:

To consider and, if thought fit, to pass with or without modification, the following resolution as an Ordinary Resolution:-

“RESOLVED that pursuant to the provisions of Section 139 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules made thereunder, as amended from time to time, -------------------------------, Chartered Accountants (ICAI Firm Registration No. -----------------------), the retiring Auditors of the Company, be and is hereby re-appointed as Auditors of the Company to hold office from the conclusion of this Annual General Meeting (AGM) until the conclusion of the ------------------------ of the Company to be held in the year -------------- (subject to ratification of their appointment at every AGM), to examine and audit the accounts of the Company, on such remuneration as may be mutually agreed upon between the Board of Directors of the Company and the Auditors plus reimbursement of service tax, travelling and out-of pocket expenses.”

Or if you appointing auditor for one year only then the resolution can be suitably modified.

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