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Consent & declaration u/s/224-1b

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CS Chirag Shah

22 Points Posted on 09 January 2012

What is the fine / penalty wrt non compliance wrt conditions for appointment / reappointment of auditors wrt following :

1)Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed

2)Every auditor appointed under subsection (1), 2[ shall within thirty days of the receipt from the company of the intimation of his appointment, inform the Registrar in writing that he has accepted, or refused to accept, the appointment.

Kindly provide solution for this , preferably with relevent sections & offical links, if any.

Thanks

- Chirag Shah

Replies (1)

Sonam Bidasaria

742 Points Posted on 14 January 2012

As of now, no penalty has been levied for not appointing the auditors timely. There is not time limit for filing Form 23B like other ROC forms. In the form only date of receipt of intimation by Auditor is asked.

In case of Form 23A and Form 23ACA, penalty is automatic calculated by the MCA with respect to date of AGM. At the time of filing Form 23B, no filing fees is charged by the MCA, hence no question of penalty arises.