Mayuri Lal (officer CS) (748 Points)
24 March 2011Dear Members,
The procedure for appointment of auditor du to resignation is as follws-
1. Hold a BM to finalise new auditor then approve resignation of previous auditor then approve the notice of an EGM.
2. Ordinary Resolution will be passed in the EGM
3. Intimate new auditor about appointment
aM I RITE..
No form is to be filed with the ROC rite. ????
And canyone provide me with letters and certificates required for the above procedure.
ITS VERY URGENT
tHANKS
Mayuri Lal
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 24 March 2011
| Originally posted by : Mayuri Lal | ||
 |
Dear Members, The procedure for appointment of auditor du to resignation is as follws- 1. Hold a BM to finalise new auditor then approve resignation of previous auditor then approve the notice of an EGM. 2. Ordinary Resolution will be passed in the EGM 3. Intimate new auditor about appointment aM I RITE.. No form is to be filed with the ROC rite. ???? And canyone provide me with letters and certificates required for the above procedure. ITS VERY URGENT tHANKS Mayuri Lal |
 |
Hi Mayuri
Its case of Casual Vacancy of Auditors.
Provisions of Section 224 applicable.
Casual vacancy is caused due to death, resignation or disqualification of auditors.
In case of resignation of auditors, the vacancy needs to be filled only through General Meeting.
Section 224(6)(a)
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(6) (a) The Board may fill any casual vacancy in the office of an auditor; but while any such vacancy continues, the remaining auditor or auditors, if any, may act:
Provided where such vacancy is caused by the resignation of an auditor, the vacancy shall only be filled by the company in general meeting.
(b) Any auditor appointed in a casual vacancy shall hold office until the conclusion of the next annual general meeting.
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Points to note:
1. Call Board Meeting, take note of Resignation
2. Call EGM, Fix Venue and date of EGM , send notices
3. In EGM, take record of the same, and appoint another statutory auditors , who shall hold office only till
conclusion of the forthcoming annual general meeting.
4. If resolution is ordinary no need to file form 23, if special do file form 23
5. Also the appointed auditor need to file form 23B from his end within 30 days of appointment.
Before appointing the new auditor, kindly take consent as required to act as auditor till the AGM,
and post EGM, intimate them of their appointment as auditors in place of earlier auditors holding office
Till AGM.
If i have missed out anything, experts please advice.
regards
Santosh Shah
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 25 March 2011
No need for any consent letter but you have to get a letter from the auditor that his appointment would be within limits specified in Section 224(1B).
Also get the approval of members in general meeting for the remuneration of Auditors.
Other procedural aspects enumerated by Santosh Shah is perfect.
Mayuri Lal
(officer CS)
(748 Points)
Replied 25 March 2011
thank u
Ok so in all following documents will be required..
1) Board Resolution
2) Notice along with Explanatory Statement
3) Letter from the auditor that his appointment would be within limits specified in Section 224(1B).
Thats,it???
Any communication form teh resigning AUditor like NOn Objection Certificate and all or resignation Letter..??
Regards,
Mayuri Lal
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 25 March 2011
form 23B is required to be file with ROC.
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 25 March 2011
| Originally posted by : Mayuri Lal | ||
|
|
thank u Ok so in all following documents will be required.. 1) Board Resolution 2) Notice along with Explanatory Statement 3) Letter from the auditor that his appointment would be within limits specified in Section 224(1B). Thats,it??? Any communication form teh resigning AUditor like NOn Objection Certificate and all or resignation Letter..?? Regards, Mayuri Lal |
|
Of course the resignation letter would be required. The trigger point for appointment of another auditor is the resignation of the present auditor.
Once he submits his resignation , what objecion he can have in appointing another in his place. I don't think it's required.
Again appointment and remuneration is to be approved by shareholders in the general meeting.
ALI VIRANI
(PRACTICE)
(22 Points)
Replied 19 September 2016
If auditor appointed in EGM, is it required to file form MGT-14 ?? ( I think every business of EGM is special business, so required to file MGT-14)
Poonam kayal
(practising company secretary )
(40 Points)
Replied 16 November 2016
what is procedure for casual Vacancy of Auditor .If the old auditor resigns on 10-08-2016 and the new auditor signs the balance sheet on 05-09-2016 and AGM date is 30-09-2016.
What all filing need to be done
What all drafting need to be done
can anyoone share the FORMS and Draft doc for reference at cspoonamkayal @ gmail.com.
CAclubindia
