15 May 2021
1. In continuation to the query and reply given by Shri B Chakrapani Warrier on the above issue, I would like to ask whether ADT1 is to be filed first time when appointed by Board of Directors, and then again when regular appointed for 5 years by EGM/AGM.
2. If resigned due to change in constitution after 3 year out of 5 years appointment in proprietorship, then for how many years the firm will be appointed in EGM whether for 2 years or 5 years. As per provision auditors has to be appointed for 5 years, means not less than this. Please give your advice. Thanks
15 May 2021
1. Yes, ADT-1 shall be filed for first auditor appointed by Board. And when auditor will be appointed at AGM then again ADT-1 will be filed. 2. Resignation of Auditor firm for any reason creates casual vacancy that shall be filled as per section 139(8)(i) of the Companies Act, 2013. In the given case an auditor shall be recommended by the Board and his appointment shall be approved in GM conducted within 3 months of such casual vacancy. And the tenure of such auditor shall be till the next AGM only. In that AGM auditor shall be appointed for next 5 years. 3. As per provisions of the Act an auditor can be appointed in AGM for Five years only.
CAclubindia
