Auditor refuses appointment at AGM

How can a Auditor refuse his Appointment in AGM while the company is already required to obtain a consent from him before joining to act as Auditor if Appointed . Once the company obtains a consent from Auditor before passing a resolution (which is statutory requirement) then how can he later refuse to be appointed . What is the use of giving a consent then ?

Replies (3)

No consent is obtained before the appointment of the auditor. I think ur getting confused betweem auditor and director. Consent is required to be given by director of a public company before his appointment.

Provisions for the auditor are as follows:

u/s 224: Co gives the notice to auditor within 7 days of appointment (i.e. 7 days after passing the resolution) The Auditor then within 30 days of receipt of the notice from the co wrt the appointment intimates the ROC in form 23B of the approval or rejection of the appointment.

i hope this makes it clear, that the auditor may or may not accept the appointment after the resolution is passed.

As regards the certificate u/s 224(1B) i dont think( though it looks so, prima facie) that the giving of the certificate means the approval of the auditor wrt to the appointment. In my opinion..it may rarely happen, but the Sec 224 does preserve the right, even after the appointment by the co, for the auditor to decide on the appointment irrespective of the certificate furnished

Further the words of the Sec 224(1B) say "Appointment if made, shall be within the ceiling on number  of audits" 

Hence i feel this clarifies just the mere eligibility and not the final acceptance of the auditor

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details