RESIGNATION OF STATUTORY AUDITORS

 

Statutory Auditors of a Pvt Ltd Co have resigned during the year due to personal reasons before of the Signing of the Balance Sheet. The new auditors can be appointed in the EGM of the shareholders. My Queries are:

1. Whether the New Auditors shall be appointed by Special Resolution or by Ordinary Resolution in the EGM?

2. Whether the New auditors will be required to file Form - 23B.

3. Is there any penalty on the Auditors on delay in filing of Form- 23B by the New Auditors?  

4. For the Current years Directors Report , Whether it is advisable/required to mention about the resignation of the Previous Auditor's Resignation and appointment of a new Statutory Auditor during the year.

Please advise at the earliest.

If possible, send me a draft Directors Report incorporating this point. 

Thanx

CA. Dharmender Ilwadia

ca.dkilwadia @ gmail.com

 

Replies (4)

Hi,

 

Please check the answers below and revert if there is any doubt.

 

  1. New Auditors shall be appointed by Ordinary Resolution in the EGM.
  2. Filing of form-23B not required at this time i.e. filing of casual vacancy. But after AGM when you re-appoint him then file form-23B.
  3. Not applicable now.
  4. Yes. It should be mentioned in the directors’ report.

 

 

Best Regards

 

hi ankur,

can u quote the section please

Relevant section for filing of casual vacancy caused due to resignation is section 224(6).

 

Relevant section for Form-23B is Section 224(1).

 

Thanx Ankur

Will u please provide me the draft of the point to be mentioned in the Directors Report regarding lhe resignation of the stautory auditors during the year and the appointment of the New Auditors filling up the casual vacancy.

With Regards

Dharmender Ilwadia

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