29 September 2009
Respected Sirs we are Pvt Ltd company our AGM was held on 1st september2009 we didnt appoint a ca for the next financial Year 2009-10 whether we can appoint a CA at any time during the financial year or there is any specific provision for appointment of a CA
29 September 2009
Appointment of auditor is mandatory at each annual general meeting The auditor(s) appointed at the last annual general meeting ceases to hold office at the conclusion of the next annual general meeting. Therefore, the auditor(s) must be appointed at each annual general meeting to hold office till the conclusion of the next annual general meeting. It has been held in the case of the Institute of Chartered Accountants v Jnanendranath Saikia (1955) 25 Comp Cas 53, 55 (Assam) that the appointment of auditor is mandatory in the annual general meeting for the ensuing year.
29 September 2009
Appointment of auditor by the Central Government (Regional Director) Section 224(3) provides that if no auditors are appointed or re-appointed at an annual general meeting of a company, the Central Government may appoint a person to fill the vacancy. Therefore, the power of the Central Government to appoint auditors becomes exercisable when no auditors are appointed or reappointed at an annual general meeting of a company.
The Company is required to give intimation electronically to the Regional Director (Powers of the Central Government were delegated to the Regional Director) vide Notification No. GSR 288(E) dated 31st May, 1991) in new e-Form 24A prescribed by Notification No. GSR 56(E) dated 10th Feb., 2006.
Obligation has been cast on the company that within seven days of the Central Government's power u/s 224(3) becoming exercisable, it shall give a notice of that fact to that Government; and if a company fails to give such notice, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to five thousand rupees.
No fee is required to be paid for intimation under section 224(4)
As per the Department's Letter No. 35/16/69-CL-III, dated 1-11-1971 the Department is of the view that notices under section 224(4) cannot be considered as applications under the Companies (Fees on Application) Rules and as such are not chargeable with the prescribed fees. On receipt of such notice in the prescribed e-Form 24A, it is the statutory duty of the Regional Directors to appoint auditors under section 224(3). No fee is chargeable on such notices for appointment of auditors under section 224(3).
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