Auditors appointment

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Sheetal Darediya (Querist)
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20 August 2009 whether permission of central govt to be taken if no auditor is appointed by private company in AGM or what procedure is to followed

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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20 August 2009

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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20 August 2009 Yes, section 224(1) start with "Every company .............." so it is applicable on both public company and private company. company must inform the Central government within 7 days from which such power of central govt. becomes excisable i.e. with 7 days from date of AGM in which auditor not appointed.

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(se4ction 224(1) Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed Provided that before any appointment or re appointment of auditor or auditors is made by any company at any annual general meeting, a written certificate shall be obtained by the company from the auditor or auditors proposed to be so appointed to the effect that the appointment or reappointment, if made, will be in accordance with the limits specified in sub-section (1B).

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