Appointment of first auditor.

This query is : Resolved

Sonali Sinha (Querist)
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08 September 2013 A company is formed in June'2012.But by negligence/mistake it had not appointed an auditor till the end of April'2013.Can it appoint an auditor inthe month of May'2013.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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09 September 2013 Appointment of first auditor is not require to file to roc. So no tension. Just get balance sheet signed by auditor u want to and file it.

Ankur Garg

Ankur Garg (Expert)
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09 September 2013 No u cannot appoint first auditor in the month of May 2013 as this appointment needs to be done within 30 days of incorporation of the company as required by section 224(5).

First finalise an auditor and take confirmation from him in back date and give him appointment letter in back date.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 September 2013 Agree with both of the genuine Experts,

Under sub section 5 of section 224 it is provided that the First auditor of the company shall be appointed by the Board withing one month of the date of incorporation of the Company and the auditors so appointed shall hold the office untill the conclusion of the first AGM.

However, if the Board fails to appoint the Auditors within 30 days the Company in general meeting may appoint the First Auditor to hold the office untill the conclusion of the first AGM and after that in every AGM.

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