Regarding Appointment of Auditor

Regarding Appointment of Auditor ?

Auditor is to be Appointed in case of companies i.e. Government company and other than government company.

• As per section 2(45) of companies Act, 2013 Government company means a company in which not less than 51% of the paid up share capital is held by Central Government or by State Government or by both and also includes a company which is a subsidiary company of such a Government Company.

As per section 139 of Companies Act, 2013 which deals with Appointment of Auditor.

• Appointment of First Auditor in case of Government Company:

 First Auditor is to be appointed by Comptroller and Auditor-general of India (C&AG) within 60 Days from the Date of Registration (DOR).In case C&AG fail to apponit the Auditor within prescribed time then, Board of Directors (BOD) will appoint within next 30 days from the expiry of 60 Days.In case of failure by BOD, it shall inform to the members of the company. Members will appoint Auditor within 60 Days by calling an Extraordinary General Meeting (EGM).The First Auditor will hold the Office till the conclusion of the First Annual General Meeting (AGM).

• Appointment of First Auditor in case of company, other than Government Company:

First Auditor is to be appointed by BOD within 30 days from Date of Registration (DOR). In case of failure by BOD, it shall inform to the members. The members of the company will appoint within 90 days in an EGM. The First Auditor will hold office till the conclusion of the First Annual General Meeting (AGM).

• Appointment of Subsequent  Auditor in case of Government Company:

The subsequent Auditor is to be appointed by Comptroller and Auditor-general of India (C&AG) within 180 days from the commencement of year. And he shall hold the office till the conclusion of AGM.

• Appointment of Subsequent Auditor in case of company, other than Government Company:

Subsequent Auditor is to be appointed by members in Annual General Meeting (AGM). And he shall hold the office from 1^stAGM to 6^thAGM subject to fulfillment of the conditions.

While appointing Auditor in the company it should be noted that Individual or firm should satisfy the eligibility condition which specified under section 141 of companies Act, 2013 and while appointing we should get written consent from the auditor about his willingness to be appointed as an auditor of our company.

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