Ratification of auditors appointment

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prachi gupta (Querist)
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25 December 2014 Can i say that no ratification = removal of auditor before expiry

or both are different

ratification is covered under section 139 and its says no ratification= casual vacancy (As per text book)

removal is covered under 140

they dont refer each other

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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26 December 2014 Both Failure of Ratification and removal are two different thing.

As per explanation to rule 3 of Companies (Audit and Auditors) Rules, 2014 it is clarified that, if the appointment is not ratified by the members of the company, the Board of Directors shall appoint another individual or firm as its auditor or auditors

Whereas Removal of Auditor is governed by Section 140 (1) and Rule 7 of Companies (Audit and Auditors) Rules 2014 and required Obtaining the prior approval of the Central Government.

prachi gupta

prachi gupta (Querist)
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26 December 2014 thanks mitesh sir

Kumar

Kumar (Expert)
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27 December 2014 The said explanation mentions after following the procedure laid down in this behalf under the act. The only procedure laid down in the act is removal of auditor.
If we consider otherwise, members can appoint an auditor for one year and board can appoint another for next four years

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