30 October 2009
In a Private Ltd. co., if an auditor is not appoined in an AGM for the forthcoming year would it amount to any non compliance. Would it be complying if an auditor is appointed by convening a EGM subsequently.
31 October 2009
You can do so. But in AGM one subject should be there for appointment and there the directors should explain that the auditor has resigned and resons to be informed to the shareholders and later on egm can be conducted and a new auditor can be appointed at a later stage.
Section 224(1) state that every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting.
So the tenure of your last auditor was over in this AGM. You have to appoint same auditor or any new auditor in this AGM. But you fail to appoint auditor in this AGM.
In your case you can not appoint auditor through EGM as there is specific section to deal with your problem.
You have to apply to central govt. u/s 224(3) to appoint yout auditor for the currevt FY.
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