Appointmnet of auditors

MCA 199 views 4 replies

Gargi Ranade

415 Points Joined June 2013

Dear all,

What is the correct sequnce of letters in case of Appointment of Auditors

1. Co. send proposal for appointment of Auditors

2. Auditors send Eligibility Letter

3. Co. appoint auditors in AGM and send intimation of Appointment of Auditors along with AGM Resolution

4. Auditors send Consent for their appointment.

1.Co. send proposal for appointment of Auditors

2. Auditors send Eligibility Letter and Consent Letter

3. Co. appoint auditors in AGM and send intimation of Appointment of Auditors along with AGM Resolution.

Further , We have appointed a new auditor firm for the period of next 5 years subject to shareholders ratification each year and

Auditors in their consent mentioned the period of appointment as 1 year , do we need to ask them to replace the letter with accepting appointment for 5 years period in stead of 1 year .

Regards,

Replies (4)

Baljeet

Associate

33 Points Joined March 2017

Answer deleted by self.

Baljeet Singh

CA B.Com (H)

954 Points Joined March 2012

Hi Gargi,

IMO the sequence B is correct. In the notice for the AGM where auditors have to be appointed we do mention that auditors consent and eligibility has been confirmed. This forms the part of explanatory statements to the point of business.

In case where Auditor has consented for only one year of appointment does not affect the appointment, as the auditor is supposed to hold office for 5 years. The auditors will have to resign at the second AGM. This will lead to a casual vacancy u/s 139(8).

Let's wait for other opinions as well.

Gargi Ranade

415 Points Joined June 2013

Thank you for reply , Baljee Sir.

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Originally posted by : Gargi Ranade
	Dear all, B 1.Co. send proposal for appointment of Auditors 2. Auditors send Eligibility Letter and Consent Letter 3. Co. appoint auditors in AGM and send intimation of Appointment of Auditors along with AGM Resolution. Further , We have appointed a new auditor firm for the period of next 5 years subject to shareholders ratification each year and Auditors in their consent mentioned the period of appointment as 1 year , do we need to ask them to replace the letter with accepting appointment for 5 years period in stead of 1 year . Regards,