Section 224 in the companies act, 1956

MCA 3193 views 2 replies

CS Chirag Shah

28 Points Joined January 2012

What is the fine / penalty wrt non compliance wrt conditions for appointment / reappointment of auditors wrt following :

1)Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed

2)Every auditor appointed under subsection (1), 2[ shall within thirty days of the receipt from the company of the intimation of his appointment, inform the Registrar in writing that he has accepted, or refused to accept, the appointment.

Kindly provide solution for this , preferably with relevent sections & offical links, if any.

Thanks
- Chirag Shah

Replies (2)

dipali shinde

company secretary

163 Points Joined February 2011

Hello Chirag,

Section 629A becomes applicable as no penalty has been specified in the Section 224 itself.

Section 629A reads thus:

629A. Penalty where no specific penalty is provided elsewhere in the Act.

If a company or any other person contravenes any provision of this Act for which no punishment is provided elsewhere in this Act or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, the company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to 1[five thousand rupees], and where the contravention is a continuing one, with a further fine which may extend to 2[five hundred rupees] for every day after the first during which the contravention continues.]

Regards

Dipali Shinde