office of auditor
This query is : Resolved
11 March 2010
one ca automatically vacated his office because of indebtness more than rs. 1000 or for holding equity share.
now once he vacated his office, then when he again can become auditor of that comapny, when he has no such idebtness or equity share only after
after one hour?
after one day?
after one week?
after one year?
now once he vacated his office, then when he again can become auditor of that comapny, when he has no such idebtness or equity share only after
after one hour?
after one day?
after one week?
after one year?
11 March 2010
No time specified and there is no long time prohibition in law. So in my opinion he may be appointed at once after clearing the disqualification.
As this is a case of casual vacancy u/s 224(6) so he may be re-appointed by the board of directors.
However am not very sure if there is any internal restriction by ICAI through any circular.
Views of other experts solicited.
Regards
As this is a case of casual vacancy u/s 224(6) so he may be re-appointed by the board of directors.
However am not very sure if there is any internal restriction by ICAI through any circular.
Views of other experts solicited.
Regards
Message likes :
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12 March 2010
a
12 March 2010
Thanks for the gesture. Good Luck
16 March 2010
i require more guidence on the problem as the problem is not completely solved.
09 August 2024
In the context of Indian company law, specifically under the Companies Act, 2013, if a Chartered Accountant (CA) vacates their office as an auditor due to reasons like indebtness or holding equity shares, there are specific rules regarding when they can be reappointed as the auditor for that company.
### **Conditions for Reappointment as Auditor:**
1. **Indebtedness**: If a CA vacates their office due to indebtness of more than ₹1,000, they must first clear the debt before being eligible for reappointment. The Companies Act does not specify a minimum waiting period like one hour, one day, or one week. However, the CA must ensure that all conditions are fully met and that the cause of their vacating the office has been rectified.
2. **Holding Equity Shares**: If a CA vacates their office due to holding equity shares in the company, they must divest themselves of those shares before they can be reappointed as the company's auditor.
### **Specific Time Frame for Reappointment:**
- **Legal Requirement**: The Companies Act, 2013, does not specify an exact time frame (e.g., one hour, one day, one week, or one year) that must pass before a CA can be reappointed after vacating their office due to such reasons. The key requirement is that the CA must resolve the issue that led to the vacation of the office (such as clearing the debt or selling the shares) before they can be reappointed.
- **Practical Considerations**: While there is no prescribed waiting period, practically speaking, the CA should ensure that all legal and regulatory conditions are met. It's prudent to allow sufficient time for the company and the CA to verify that the conditions for reappointment are fully satisfied.
### **Summary:**
A CA who has vacated their office due to indebtness or holding equity shares can be reappointed once the issues that led to their vacating the office are fully resolved. There is no specific mandatory waiting period mentioned in the Companies Act, 2013, but the CA must ensure compliance with all legal requirements. It is generally advisable to resolve the issue promptly and ensure that all regulatory requirements are met before seeking reappointment.
For precise advice and compliance, it is also recommended to consult with a legal expert or a company secretary who can provide guidance based on the latest legal provisions and practices.
### **Conditions for Reappointment as Auditor:**
1. **Indebtedness**: If a CA vacates their office due to indebtness of more than ₹1,000, they must first clear the debt before being eligible for reappointment. The Companies Act does not specify a minimum waiting period like one hour, one day, or one week. However, the CA must ensure that all conditions are fully met and that the cause of their vacating the office has been rectified.
2. **Holding Equity Shares**: If a CA vacates their office due to holding equity shares in the company, they must divest themselves of those shares before they can be reappointed as the company's auditor.
### **Specific Time Frame for Reappointment:**
- **Legal Requirement**: The Companies Act, 2013, does not specify an exact time frame (e.g., one hour, one day, one week, or one year) that must pass before a CA can be reappointed after vacating their office due to such reasons. The key requirement is that the CA must resolve the issue that led to the vacation of the office (such as clearing the debt or selling the shares) before they can be reappointed.
- **Practical Considerations**: While there is no prescribed waiting period, practically speaking, the CA should ensure that all legal and regulatory conditions are met. It's prudent to allow sufficient time for the company and the CA to verify that the conditions for reappointment are fully satisfied.
### **Summary:**
A CA who has vacated their office due to indebtness or holding equity shares can be reappointed once the issues that led to their vacating the office are fully resolved. There is no specific mandatory waiting period mentioned in the Companies Act, 2013, but the CA must ensure compliance with all legal requirements. It is generally advisable to resolve the issue promptly and ensure that all regulatory requirements are met before seeking reappointment.
For precise advice and compliance, it is also recommended to consult with a legal expert or a company secretary who can provide guidance based on the latest legal provisions and practices.
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