Originally posted by : Mayuri Lal
There is public company ABC which is the subsidiary of a listed company. Now the STATUTORY auditor of ABC wants to resign and in place of him a new auditor has to be appointed so this will happen in the EGM only.
''Can anyone explain me the provisionsa and the procedure regarding the above or the relevant resolution and documents required for the aabove purpose.
Its case of Casual Vacancy of Auditors.
Provisions of Section 224 applicable.
Casual vacancy is caused due to death, resignation or disqualification of auditors.
In case of resignation of auditors, the vacancy needs to be filled only through General Meeting.
(6) (a) The Board may fill any casual vacancy in the office of an auditor; but while any such vacancy continues, the remaining auditor or auditors, if any, may act:
Provided where such vacancy is caused by the resignation of an auditor, the vacancy shall only be filled by the company in general meeting.
(b) Any auditor appointed in a casual vacancy shall hold office until the conclusion of the next annual general meeting.
Points to note:
1. Call Board Meeting, take note of Resignation
2. Call EGM, Fix Venue and date of EGM , send notices
3. In EGM, take record of the same, and appoint another statutory auditors , who shall hold office only till
conclusion of the forthcoming annual general meeting.
4. If resolution is ordinary no need to file form 23, if special do file form 23
5. Also the appointed auditor need to file form 23B from his end within 30 days of appointment.
Before appointing the new auditor, kindly take consent as required to act as auditor till the AGM,
and post EGM, intimate them of their appointment as auditors in place of earlier auditors holding office
If i have missed out anything, experts please advice.