Appointment of Auditor

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Ca Subhash Kumar (Querist)
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22 October 2009 Can an auditor appointed in EGM? What would be the requirement in case of
A. Private Limited company?
B. Public Limited company ?

Thanks

Ca Subhash Singh

Ankur Garg

Ankur Garg (Expert)
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22 October 2009 As per section 224(5) first auditor should be appointed by board of director with in 1 month of registration of company.

Subsequently statutory auditor is appointed by shareholders in the AGM as per section 224(1).

Auditor may be appointed in the EGM only in 1 case. Under section 224(6) in case of casual vacancy due to resignation the same can be filled in the EGM.

Now decide accordingly or elaborate your query regarding appointment.

Section 224 is applicable to both public and private company.

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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22 October 2009 well, in case of casual vacancy due to resignation of Auditor, an extraordinary general meeting shall be convened as board of directors has no power to fill it. No speical notice u/s 225 is necessary in this case. The appointment shall be made by passing an ordinary resolution.

Regards

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Ca Subhash Kumar

Ca Subhash Kumar (Querist)
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22 October 2009 Is there any provision to take permission of Central Govt. for appointment of Auditor in EGM?

The case is - One of a CS asked me for appintment of Stat Auditor of Pvt. ltd. company for FY 2008-09? I issued my elligibilty letter to him. But still he has not given me the appointment letter.

The AGM is already completed.

The existing Stat Auditor has not given resignation? not done audit?

what should be the way?

Ankur Garg

Ankur Garg (Expert)
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22 October 2009 Hi,

If existing Stat Auditor has not given his resignation which means his office is continue. You can not be appointed as auditor of that company.

One side you are saying audit not done and other side you are saying AGM is already completed. How is that possible?

Try and collect AGM notice of that company. Check whether annual account filed with ROC. If yes then download annual account from MCA site through online inspection. In online inspection youâ€™ll find AGM notice. From AGM notice you can easily find out exact condition.

Regards