1st auditor oc company

Pvt ltd 711 views 3 replies

Atul h Kaulwar

Article

91 Points Joined September 2009

224. Appointment and remuneration of auditors.—

(1) Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed

1A) Every auditor appointed under sub-section (1) shall within thirty days of the receipt from the company of the intimation of his appointment, inform the Registrar in writing that he has accepted or refused to accept, the appointment in Form 23 B

(5) The first auditor or auditors of a company shall be appointed by the Board of directors within one month of the date of registration of the company; and the auditor or auditors so appointed shall hold offices until the conclusion of the first annual general meeting

I need help that,

Whether the First auditor appointed by the board U/S 224 (5) needs to be communicated to the ROC by first auditor? if yes in which form?

Whether the board resolution appointinf first auditor needs to be communicated to the ROC by the Company? if yes whether it is to be communicated within any time limit?

Replies (3)

Smriti Dhawan

Company Secretary

347 Points Joined June 2009

Form 23B is filed under Section 224 (1A) of Companies Act,

Every auditor appointed at each annual general meeting, hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed shall within thirty days of the receipt from the company of the intimation of his appointment, inform the Registrar in writing that he has accepted or refused to accept, the appointment.

In case of appointment of First Auditor there is no need to file Form 23 B , The Company need not send any statutory intimation to the First Auditor(s), of their appointment within 7 days. Notice of appointment can be sent in the ordinary course of business within reasonable time.

The First Auditor(s) are not required to inform the ROC about their acceptance or refusal of such an appointment.

Shabnam Siddiqui

Company Secretary

152 Points Joined August 2009

Non filing of Form 23B is understood, as it has to be filed only after confirmation of appointment of Auditor in general meeting and again the intimation to the Auditor shall be within 7 days of appointment or say General Meeting. But how the period for intimation of appointment by the Board shall be determined? What is meant by reasonable time?

Smriti Dhawan

Company Secretary

347 Points Joined June 2009

Dear Shabnam, Section 224 of Companies Act, does not stipulates any condition with regard to intimation to First Auditor but as a Good Corporate Practice , it will be better to inform the Auditor as soon as possible, 7 day time limit is in case of AGM, you can take it between 7 to 10 days from date of Board Meeting.