Hi all,
Please answer whether the new appointment is valid. If not, who is to appoint the auditor in this case:
Mr. X was appointed as auditor of ABC Ltd at the AGM. However, he resigns after a month. No General Meeting was held to fill the vacancy. Another auditor was appointed only in the next AGM.
Thanks in advance
The auditor can only be appointed by the shareshoders in case of resignation.
Hi Karan
Please note that even though shareholders were supposed to appoint new auditor, no EGM was held for the same
No filling of casual vacancy -----It is a violation of section 224 i.e. audit of accounts. There is no statutory auditor in the company to audit the accounts and sigh balance sheet. Rectify all this ASAP to avoid future problems.
Regards
CAclubindia
