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Branch audit of sec.25 company

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Querist : Anonymous

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Querist : Anonymous (Querist)
26 April 2014 A Section 25 company having 100s of branches (Eg:- a church)decided to appoint branch auditors. Each branch head is authorised to appoint the branch auditor. Can an auditor accept the appointment letter issued by the branch head. It is practically impossible to convene a general meeting and appoint each branch auditors? Is such appointment is in violation to provisions of Companies act, 1956? If so, what is the correct procedure for appointment and acceptance of Branch Auditor??
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Ronak

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Ronak (Expert)
26 April 2014 Sec 228 Central government makes certain rules
(a) the arrangement made by the company for the audit of accounts of the branch office by a person otherwise qualified for appointment as branch auditor even though such person may be an officer or employee of the company;
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