Failure to appoint First Auditor by a Section 8 Company
This query is : Resolved
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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?
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?
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!
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?
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?
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.
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