Appointment of first auditor of the company

This query is : Resolved

Sarojranjanmaharana (Querist)
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20 December 2013 SIR MY QUERRY IS REGARDING THE APPOINTMENT OF FIRST AUDITOR OF THE COMPANY NEWLY INCORPORATED ON 1ST FEBRUARY,2013 .THE COMPANY FAILED TO APPOINT THE FIRST AUDITOR OF THE COMPANY WITH IN ONE MONTH OF THE REGISTRATION OF THE COMPANY. NOW WANT TO APPOINT THE AUDITOR IN THE GENERAL MEETING KINDLY ADVICE ME REGARDING THE PROCEEDURE TO CONDUCT SUCH MEETING AND WHAT IS THE TIME LIMIT WITH IN WHICH SUCH MEETING CAN BE CONDUCTED.

Ajay Mishra

Ajay Mishra (Expert)
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20 December 2013
Appointment of first auditors
As per section 224(5), 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. Following provisions
are related to the matter:
(i) Appointment of first auditors in general meeting.—A company in general meeting may appoint the first auditor or auditors if the Board of directors fails to exercise its power of appointment of first auditors within one month of the date of incorporation of the company.
(ii) Appointment of first auditors through Memorandum and Articles of Association.—The Institute of Chartered Accountants of India has expressed its opinion vide Compendium of Opinion Volume No. 1 that the appointment of first auditors through the Memorandum and Articles of Association of the newly floated private company is not a valid appointment.
(iii) Removal of first auditors.—The company may, at a general meeting, remove first auditor(s) 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.
(iv) Tenure of office of the first auditor.—The first auditor(s) shall hold office until the conclusion of the first annual general meeting of the company and then be eligible for re-appointment.

Ajay Mishra

Ajay Mishra (Expert)
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20 December 2013
Procedure to file Form 23B (Appointment of First Auditor)

1. The company will call General Meeting to appoint an statutory auditor of company.
2. Send letter of appointment to auditor within seven days from the appointment.
3. The auditor give letter of acceptance as auditor to the company.
4. The auditor also intimate ROC in Form 23B within 30 days from the date of acceptance of letter of appointment.
5. Form 23B can be download from www.mca.gov.in
6. Letter of appointment will be attached with Form 23b.
7. The SRN no will be generated with fee.

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Ganeshbabu K

Ganeshbabu K (Expert)
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20 December 2013 1)If the Board fails to do so within 30 days after the incorporation of the company, hold a general meeting by issuing notices in writing at least 21 clear days before the date of general meeting with relevant explanatory statement and pass an //////ORDINARY RESOLUTION\\\\\\\.

2)(Intimate) the auditors of the Company within 7 days from the date of appointment.

3)Obtain a written certificate from the auditor to the effect that the appointment, if made, will be in accordance with the limits specified in (Section 224(1B).