13 September 2014
A newly Incorporated Government Company has failed to appoint first Auditor within time specified by Companies Act 2013 by Board of Directors and in EGM also.
14 September 2014
First Auditor of the Govt. Company shall be be appointed by Comptroller and Auditor General of India within the period of 60 days of its incorporation and if it is not done then by the Board of Directors of the company within the period of next days. i.e. 90days otherwise EGM shall be held and within 60 days of an EGM. and
if the company has done default in all the above mentioned cases, As per Section 147 the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees
15 September 2014
APPOINTMENT OF AUDITOR IN GOVERNMENT COMPANY- Section 139 (5), 139 (7), 139(8),139 (11)
The appointment of auditor in Government company or government controlled (directly/indirectly) company shall be held in accordance with the following provisions:
The First auditor shall be appointed by the Comptroller and Auditor General (CAG)within 60 days from the date of incorporation and in case of failure to do so, the Board shall appoint auditor within next 30 days and on failure to do so by Board of Directors, it shall inform the members, who shall appoint the auditor within 60 days at an extraordinary general meeting (EGM), such auditor shall hold office till conclusion of first Annual General Meeting.
PUNISHMENT FOR CONTRAVENTION – Section 147
For the Company If any of the provisions of sections 139 to 146 (both inclusive) is contravened, the company shall be punishable with fine which shall not be less than Rs. 25,000 but which may extend to Rs. 5,00,000 and every officer in default shall be punishable with imprisonment for a term which may extend to 1 year or with fine which shall not be less than Rs. 10,000 but which may extend to Rs. 1,00,000 or with both.
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