16 November 2009
i have heard that statutory auditors can be appointed by the board approval in sonme cases. is that true & if yes what are those circumstances.....can a board recommend his statutory auditor...
Statutory auditors can be appointed by the board in certain cases.
As per section 224(5) board has the power to appoint statutory auditor as first auditor.
As per section 224(6) board has the power to fill casual vacancy caused by the death or disqualification of statutory auditor by appointing new auditor.
In normal course board may recommend auditors name to shareholders for the purpose of appointment in the AGM.
16 November 2009
The Board can appoint Auditors in following two cases-
1. To Appoint first Auditors of company within 30 days of incorporation of company. Such Auditor to continue til conclusion of First AGM
2. To Appoint Auditor in any casual vacancy caused by death /disqualification of existing Auditor except resignation of Auditor. Such Auditor to hold office till conclusion of next AGM.
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