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auditor appointment

223 views 10 replies
if Central Govt hold 40%
and
A Government Company hold 20%
paid up share capital in company
Than who will appointment auditor in company

by CAG or at AGM
Replies (10)
by c&ag
CAG will appoint auditor as company is government
No Govt. Company as per definition given 2(45)
also as per ans given in ICAI Ch 15 questions no 15 of corporate and allied laws.
CAG will appoint because it's a government company. If they fails to appoint then board will appoint.
ICAI k Answer m isko Govt Co NAHI kaha Hai , plz chk.
Don't Rely Completely on answers. First refer the definition of a government company which is defined under sub section (45) of section 2 of companies act 2013.

Later refer the provision of appointment of auditor in case of government and non government company.

sometimes they print incorrectly. Here 60% of the shares are held by Government then obviously CAG will appoint the auditor.
CG hold 40%
And
"Govt Company" 20 %
Hi Rohit Jain

I apologize I overlooked "Government Company 20%"

So in the above case Board should APPOINT the auditor within prescribe time.

As per the definition shares held by government company is not considered to be a share held by government indirectly UNLESS it is a subsidiary of such government company or wholly owned subsidiary company.

I think this question was asked in CA final in November 2016.
according to section 139(7) first auditor is appointed by CAG within 60 days.........and subsequent auditor is also appointed by CAG within 180 days
directly or indirectly agr govt. Co. share hold krega to us case m c&ag auditor appoint krega in prescribed time limit agr Wo ni krpaya to bod


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