28 December 2012
Directors of newly incorporated company failed to appoint the first auditor with in 30 days of incorporation, so now the first auditor is to be appointed only in general meeting.
Is their any time limit with in which GM is to be hold ?
Can I hold GM after 4 months of directors failing to appoint the auditor ?
The first auditor should be filed in General meeting before first AGM, because the period of first auditor is from the date of appointment till the date of AGM.
AGM means Annual General Meeting and it will be held one time in every year.
For appointing first auditor in general meeting you are free to appoint them before AGM.
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.
It has been said that before AGM auditor is to be appointed. Can I have EGM for appointment of First auditor on 01/01/2013 and AGM at 25/06/2013 for the first financial year ending on 31/03/2012
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