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Is there a time limitation froauditors when agms are not hel

Pvt ltd 604 views 1 replies

Clifford Viegas

Propprietor

24 Points Posted on 26 September 2012

For how long can a statutory auditor of a private unlisted Company continue to audit the annual accounts when AGM's are not held on account of lack of quorum?.

There is a case filed by shareholder against the management and it continues in the court. Shareholders were stayed by the Court from intereferring with operations and management of Company. Auditor has been completed audit and reported for 9 years but needs clarification whether he can continue indefinitely until court case is decided according to legal opinion obtained by Company. Is there any statute of limitation?

Besides appointment was at AGM before requirement of 23B filing. Does 23 B have to be filed for continuation of audit for current financial years as appointment was at AGM in 2002.

Replies (1)

Smriti Dhawan

Company Secretary

347 Points Posted on 26 September 2012

In case where auditor is not appointed by share holders at the annual general meeting. Such fact is to be Communicated by the Company to Central government, within 7 days of such meeting. Then Central government appoints auditor. The Auditor does appointed codes office till conclusion of next annual general meeting. If the fact of non-appointment of auditor is not Communicated to Central Government within 7 days of annual general meeting, every officer of the company will come across a penalty of Rs: 500/-

The Tenure of Auditor is from one AGM to another AGM, The Auditor once appointed by the Shareholders, should file his concent with the ROC to act as an auditor.