According to the Companies Bill, 2012 :-
A company shall appoint an individual or a firm as an auditor at annual general meeting who shall hold office till the conclusion of sixth annual general meeting.
However, the company shall place the matter relating to such appointment for ratification by members at every annual general meeting.
What is the purpose of placing the matter to the members relating to such appointment ?
According to my perception, placing it before the members for ratification at every AGM gives the members power to appoint another auditor in place of the current auditor.
It means that each Auditor has to carry out at least 6 Audits of any company. The Ultimate scope for budding Chartered Accountants will increase but as per my knowledge as per the proposed clause- DISA degree holders will be given the authority to conduct the audit of Public Listed Co.
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