Ratification of auditors appointment
This query is : Open
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
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
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.
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.
26 December 2014
thanks mitesh sir
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
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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