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What happens if first auditor is not appointed within 30days

B.K.Ray (Student CS) (42 Points)

23 November 2012

Dear Sirs/ Madams

What happens if a newly setup pvt.ltd. company doesnot appoint an auditor within 30 days of incoporation of a company. And who can be an auditor. If a company does this appointment after 30 days what penalty normally is induced.

Regards

Ray BK

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18 Replies

CA Manish (Job) (5264 Points)
Replied 23 November 2012

First Auditor of the co is to be appointed by the board of director, if BOD fails to appoint such auditor within 30 days, then co in general meeting can appoint the first auditor.

1 Like

B.K.Ray (Student CS) (42 Points)
Replied 23 November 2012

Thanks Manish Sir

After the appointment, is any communication to be made anywhere? What is the procedure? Any form to be filled up?

Thanks

CA Manish (Job) (5264 Points)
Replied 23 November 2012

You have to communicate to the auditor so that he can intimate to ROC.

AMITA KOCHER (ASSISTANT MANAGER - FINANCE) (282 Points)
Replied 23 November 2012

I THINK CG WILL GOING TO APPOINT FIRST AUDITOR IN CASE MGT OF THE COMPANY IS NOT ABLE TO APPOINT .................

CA Manish (Job) (5264 Points)
Replied 23 November 2012

Originally posted by : AMITA KOCHER
	I THINK CG WILL GOING TO APPOINT FIRST AUDITOR IN CASE MGT OF THE COMPANY IS NOT ABLE TO APPOINT .................

This is applicable for appointment of auditor other than the first auditor.

Amit Kumar Verma (CA Final CS Professional) (501 Points)
Replied 23 November 2012

As per Section 224(5), the first auditor of the company shall be appointed by the BOD within 1 month of incorporation. If BOD fails to appoint, the company may appoint the first auditor in EGM.

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 23 November 2012

As per Section 224(5) the first auditor shall be appoited by board of directors within 30 days of registration of a company. As per my knowledge and as per section 224(5)(b) if board of directors fails to appoint first auditor, the comapny in its general meeting may appoint first auditor/auditors.

Rectify me if i am wrong.

Regards,

Siddharth Bumb.

WWW.SIDDHARTHBUMB.BLOGSPOT.COM

Saurabh garg (article) (78 Points)
Replied 24 November 2012

There is no need by the co. to intimate auditor regarding first appointment.Auditor is not require to intimate roc for first appointment.

CA Devender Chauhan (Group Financial Accountant) (1526 Points)
Replied 24 November 2012

Originally posted by : CA Manish Malu
	You have to communicate to the auditor so that he can intimate to ROC.

I don't think there is any requirement in companies act to communicate to ROC by the first auditor about appointment...

Correct me if I am wrong...

Nithin Chettoor (Assistant Manager) (388 Points)
Replied 24 November 2012

There is no requirement for any intimation to ROC regarding the appointment of auditors since it is applicable only in case of an auditor appointed in a General Meeting!! :-)

CA-AK (CA) (600 Points)
Replied 24 November 2012

''Agree with Manish Malu sir''

manoj (student) (5205 Points)
Replied 24 November 2012

The first auditor or auditors of a company shall be appointed by the Board of directors within
one month of the date of registration of the company; and the auditor or auditors so appointed
shall hold office until the conclusion of the first annual general meeting. However 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 if the
Board fails to exercise its powers, the company in general meeting may appoint the first
auditor or auditors.

CA Darshak Shah (Practicing CA) (1889 Points)
Replied 27 November 2012

Originally posted by : Nithin Chettoor
	There is no requirement for any intimation to ROC regarding the appointment of auditors since it is applicable only in case of an auditor appointed in a General Meeting!! :-)

Well ...It is always advisable to file Form 23 B and intimate to ROC even for the first auditor as well...

While uploading annual returns, SRN of Form 23 B is required...

Regards

sureshraj (employee) (356 Points)
Replied 23 March 2013

Dear all,

I think as per sec 224 of the income tax act first auditor appointed by BOD with in 30 days of the incorporation of the company, in case BOD fail to appoint with in 30 days, company will be appoint 1st auditor in EGM and first auditor need not to file any form to ROC about his appointment.

Note:second and subseq. auditors need to file form to ROC with in 30 days of his appointment .

2nd & subq. auditors appointed by shareholders in every AGM.in case share holders fail to appoint CG may appoint auditor of the company.