Appointment of Auditor

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CA Huzefa Hamid (Querist)
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06 October 2010 Sir,
I want to know that who will appoint the First Auditor of the Company when Board of Directors & Also the share holders of the company fails to appoint the First Auditor of Company in their General Meeting.

I am asking this question because Central Govt. has power to appoint the Auditor in case where Company fails to appoint the Auditor in Annual General Meeting,

& in the above case company fails to appoint the first auditor in their General Meeting not in the Annual General Meeting.

Ajay Mishra

Ajay Mishra (Expert)
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06 October 2010 Dear Mr. Huzefa

In case of appointment of first auditor, the Board of Director has power to appoint first auditor and he will continue as auditor up to the AGM or until the new director is appointed in General Meeting.

Section 224(3) give power to CG to appoint auditor in case the company has not appointed auditor in BM or in general meeting.

There is no need to appoint first auditor in general meeting, you can appoint them at Board Meeting.

Regards