Casual vacancy in the office of first statutory auditor

Since the vacancy in the office of first auditor was caused due to resignation, hence the vacancy was to be filled up by the company in General Meeting as per provisions of Sec- 224 (6) (a) of the Companies Act. In my opinion, appointment of subsequent Statutory Auditor by Board in casual vacancy due to resignation of first auditor is not correct. 

Expert Views of others on this issue are welcome.

Hello,

As per Act, first statutory auditor is to be appointed by the Board of the Company. Further if casual vacancy arises then also it should be filled by the Board EXCEPT THE CASUAL VACANCY CAUSED BY RESIGNATION.

So, in your case the vacancy should be filled in General Meeting.

Its suggestable that to make good of your default as soon as you can.

Other views are welcomed!

Thanks

Regards

Nidhi

Thanks Mr. S Kumar and Ms. Nidhi for your reply.

Now the default has taken place by filling casual vacancy by Board instead of General Meeting. My queries are as under: -

1) Is appointment of new auditor valid or not? If not, what are the consequences?

2) What are the penal provision under Companies Act 1956 for such a default against the company?

3) How to make good the above situation?

Thanks

Any casual vaccancy arising in the office of an auditor due to resignation should be has to be filled in gm.casual vaccancy strictly means vacccancy arising in an office opf auditor after he was validly appointed at gm.however in many cases dept has permitted filling of casual vaccancy by board again and again i.e if original appointment was made at general meeting board is allowed to fill casual vaccancy umpteen number of times thereafter.circular has been issued by dept of campany affairs( Ref company newes and notes July 1 1963).

As per new law Board can fill vacancy within 30 days of casual vacancy due to resignation. After this within 90 days members will approve the appointment in general meeting