Appointment of cost auditor

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Dear All,

Appointment of Cost Auditor required a resolution to be passed at AGM by Shareholders or it can be appointed in any of the Board Meetings???

Regards,

Avneesh Mishra

Replies (3)

14. Remuneration of the Cost Auditor.- For the purpose of sub-section (3) of section 148,—

  1. in the case of companies which are required to constitute an audit committee—

(i) the Board shall appoint an individual, who is a cost accountant in practice, or a firm of cost accountants in practice, ascost auditor on the recommendations of the Audit committee, which shall also recommend remuneration for such cost auditor;

(ii) the remuneration recommended by the Audit Committee under (i) shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders;

  1. in the case of other companies which are not required to constitute an audit committee, the Board shall appoint an individual who is a cost accountant in practice or a firm of cost accountants in practice as cost auditor and the remuneration of such cost auditor shall be ratified by shareholders subsequently. 

 

Hi Avneesh....you have yourself answered your query....only remuneration of the Cost Auditor is to be ratified by the shareholders in the GMs.....

Yes Ma'am smiley


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