Max. Remuneration of Auditor of an Pvt. Ltd.
This query is : Resolved
20 October 2010
I just want to know that is there any rules and provisions are made in the Companies ACt, 1956 applicable to pvt. company related to max. remuneration of Auditor can be fixed up?
I just want to know that is there any rules and provisions are made in the Companies ACt, 1956 applicable to pvt. company related to max. remuneration of Auditor can be fixed up?
CA. Aryendra
(Expert)
20 October 2010
Please see the section 224 of Companies Act
The remuneration of the auditors of a company-
(a) in the case of an auditor appointed by the Board or the Central Government, may be fixed by the Board or the Central Government, as the case may be; and
(b) subject to clause (a), shall be fixed by the company in general meeting or in such manner as the company in general meeting may determine. For the purposes of this sub- section, any sums paid by the company in respect of the auditors' expenses shall be deemed to be included in the expression" remuneration".
The remuneration of the auditors of a company-
(a) in the case of an auditor appointed by the Board or the Central Government, may be fixed by the Board or the Central Government, as the case may be; and
(b) subject to clause (a), shall be fixed by the company in general meeting or in such manner as the company in general meeting may determine. For the purposes of this sub- section, any sums paid by the company in respect of the auditors' expenses shall be deemed to be included in the expression" remuneration".
20 October 2010
means it is on the descretion of the Board to decide maximum remuneration of auditor, if Auditor is appointed in AGM?
and there is no provision applicable regarding the minimum or maximum remuneration be fixed up by pvt. ltd.?
and there is no provision applicable regarding the minimum or maximum remuneration be fixed up by pvt. ltd.?
20 October 2010
There is no maximum limit of remuneration of a auditor.
CA. Aryendra
(Expert)
21 October 2010
Yeas, no maximum limit
04 December 2010
Regarding the remuneration of Auditor there is no where and in none of the act has been mentioned .As auditor appointed by director of the company so they are authorised to fix the remuneration of the auditor ,Some time auditor also appointed by the government in that case government used to fixed the remuneration for the Auditor .
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