Dear Members
Please let me know how the first Auditor of a company can be appointed if Board of Directors fails to do so within 30 days of incorporation of the company.
What is the procedure to be followed for appointment of auditor by members in General Meeting? When a General Meeting can be convened after the incorporation of company for auditor's appointment. Also provide me the format for resolution passed for this purpose in General Meeting.
Thanks
Ashish
Under sub section 5 of section 224 it is provided that the First auditor of the company shall be appointed by the Board withing one month of the date of incorporation of the Company and the auditors so appointed shall hold the office untill the conclusion of the first AGM.
However, if the Board fails to appoint the Auditors within 30 days the Company in general meeting may appoint the First Auditor to hold the office untill the conclusion of the first AGM and after that in every AGM.
DRAFT ORDINARY RESOLUTION:
"RESOLVED THAT M/s..........................., Chartered Accountants, be and is hereby appointed as Statutory Auditors of the Company upto the conclusion of the first Annual General Meeting on such remuneration as may be decided by the Board."
CAclubindia
