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casual vacancy caused dur due to resignation of auditor

Others 1444 views 7 replies
what will be the date of appointmnt in case of casual vacancy caused due to resignation .date on which board resolution was passed or egm resolution passed
Replies (7)

According to Section 139(8)(i) of the Companies Act,

1) Any casual vacancy in the office of  an auditor shall in the case of a company other than a Govt. Co, be filled by the Board of Directors within thirty days,

2) but if such casual vacancy is as a result of the resignation of an auditor, such appointment shall also be approved by the company at a general meeting convened within three months of the recommendation of the Board and he shall hold the office till the conclusion of the next annual general meeting.

so that means board will apppint n members will approved and appointment date will be board meeting date

In case of Resignation by Auditor,    Appointment Date will be EGM Date.

In Other Cases,                                         Appointment Date will be BOD Resolution Date.

thankyou very much sir..but in board resolution we will mention the board has approved or recommended.

As per the provisions of Section 139(8) of the Companies Act 2013, if casual vaccancy is the result of resignation of auditor, then such casual vaccancy shall be fillled by the Board of Directors within a period of 30 days from the date of resignation and it shall be approved by the shareholders within three months from the date of recomendation of the Board and shall hold the office till the date of upcoming Annual General Meeting the meeting.For example if the Auditor resigned in the month of June, then the vaccancy of the new Auditior shall be filled by Board of Director within period of 30 days . The Auditor has to file Form ADT 1 for appointment of new Auditor The existing Auditor has to file his regination by submiting Form ADT 3 and new Auditor shall hold the office till the conclusion of upcoming AGM and further such auditor may be appointed for a period of 5 years. 

Originally posted by : Monika Gurung
thankyou very much sir..but in board resolution we will mention the board has approved or recommended.

Obviously BOD's only Recommend Final Appointment is made by Shareholder in EGM( In case of Resignation )

In Other case BOD's made final Appoinment. No Recommendments.

But rule says appointment is to be done by board n approval is given by members.


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