Procedure for auditor

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 what is the procedure for auditor if not appointed in AGM?

Ajay Mishra

Ajay Mishra (Expert)
Follow

10 October 2012 Hi

Go to the following link, it may help you:

https://www.caclubindia.com/articles/audit-under-companies-act-1956-2003.asp#.UHVBnbJlS8o

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 Thank u so much sir for reply..As per 224(3) if auditor not appointed in AGM then company has to intimate this to Central Govt. so for this intimation any Shareholders' or Board of director's meeting is required or not?

Ajay Mishra

Ajay Mishra (Expert)
Follow

10 October 2012 Section 224(3) provides that if no auditors are appointed or re-appointed at an annual general meeting of a company, the Central Government may appoint a person to fill the vacancy. Therefore, the power of the Central Government to appoint auditors becomes exercisable when no auditors are appointed or reappointed at an annual general meeting of a company. The Company is required to give intimation
electronically to the Regional Director (Powers of the Central Government were delegated to the Regional
Director) vide Notification No. GSR 288(E) dated 31st May, 1991) in new e-Form 24A prescribed by Notification No. GSR 56(E) dated 10th Feb., 2006.

Obligation has been cast on the company that within seven days of the Central Government's power u/s
224(3) becoming exercisable, it shall give a notice of that fact to that Government; and if a company fails to give such notice, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to five thousand rupees.

Further, omission or failure to pass a special resolution at an annual general meeting for appointment of an auditor under section 224A has under mentioned two consequences:—
(a) it shall be deemed that no auditor or auditors had been appointed by the company at its annual
general meeting; and
(b) the power of the Central Government under section 224(3), to appoint auditors becomes exercisable.

Circular No. 5 of 1972, dated 21-2-1972 inter alia provides that the Government's power to appoint
auditors under section 224(3) becomes available where at an annual general meeting no auditors are
appointed or re-appointed. Where auditors are not appointed or re-appointed in accordance with the
provisions of the Act including section 224(2), as read with sections 225 and 190, section 224(3) becomes attracted in the matter.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 Thank u so much sir for giving such detailed information.

Ajay Mishra

Ajay Mishra (Expert)
Follow

10 October 2012 Welcome........

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