Failure to appoint First Auditor by a Section 8 Company

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the late appointment of a first auditor for a Section 8 Company. Although the directors missed the initial 30-day deadline, the members can still appoint the auditor by convening an Extraordinary General Meeting (EGM) even after the 90-day statutory limit has passed. It's crucial to regularise this appointment promptly to mitigate potential penalties and ensure ongoing compliance.

Mukesh

Mukesh (Querist)
Follow

01 June 2025 Hi,
I would like to know how first auditor can be appointed by a Section 8 Company after the prescribed time limit under the Companies Act, 2013.
The Company was incorporated in Dec 2022. The directors failed to appoint first auditor within 30 days. Can the members now appoint first auditors even after the prescribed time limit of 90 days by calling EGM? What will be the consequences?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

01 June 2025 you have a lot of non-compliance in this case. doing the EGM in current date would still make it impossible to comply with AGM requirements for 1st and the second year. since ADT-1 is not mandatory for first auditor appointment, may be you just that your benefit!

Mukesh

Mukesh (Querist)
Follow

01 June 2025 Thank you sir for your prompt reply.
Is it possible for the members to appoint first auditor in EGM on current date since prescribed time limit of 90 days is already over? Or are there any additional procedures for such appointment?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
Follow

12 August 2025 Yes, members can still appoint the first auditor by convening an EGM even after the 90-day period. It is important to regularize the appointment ASAP to avoid further penalties.

Mukesh

Mukesh (Querist)
Follow

12 August 2025 Thank you sir for your clarification

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now