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Sujata

asasas

32 Points Posted on 04 July 2012

Hi,

Can any one tell whether a company can appoint new statutory auditor in the middle of the financial year. If yes, kindly tell the procedure...

Replies (5)

Ankit

Articles

390 Points Posted on 04 July 2012

no a company cannot appoint a auditor in middle of the year ...in case for that it needs prior permission of Central government or a spoecial resolution to be passed in the AGM ...or if not passed then they will have to wait till next AGM ...or if CG agrees with the reason given by company to withdraw the consent of the auditor then only auditor will have to leave/vacate the office of statutory auditor of the company ....

Aarush

Delhi

1566 Points Posted on 04 July 2012

Yes , Pl refer sec 224.

Provided that—

(a) the company may, at a general meeting, remove any such auditor or all or any of such auditors and appoint in his or their places any other person or persons who have been nominated for appointment by any member of the company and of whose nomination notice has been given to the members of the company not less than fourteen days before the date of the meeting; and

(b) if the Board fails to exercise its powers under this sub-section, the company in general meeting may appoint the first auditor or auditors.

(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.

(7) Except as provided in the proviso to sub-section (5), any auditor appointed under this section may be removed from office before the expiry of his term only by the company in general meeting, after obtaining the previous approval of the Central Government in that behalf.