Appointment of First Auditor
This query is : Resolved
Guest
Guest
(Querist)
10 May 2010
Dear Sir
As per section 224(5) appointment of first auditor is to be done by Board Of Directors.
My question is that whether Board of Directors are required to pass resolution in Board Meeting or they can do so by Circulation of resolution also.
With Warm Regards.
Kunal Agrawal
+91-99295-03735
kunal.agrawal@icai.org
As per section 224(5) appointment of first auditor is to be done by Board Of Directors.
My question is that whether Board of Directors are required to pass resolution in Board Meeting or they can do so by Circulation of resolution also.
With Warm Regards.
Kunal Agrawal
+91-99295-03735
kunal.agrawal@icai.org
10 May 2010
A newly formed company is required to hold first board meeting to conduct certain essentails business like opening of account, appointing personnel for key job,validating the pre incorporation contracts etc. Hence it is essentail to have board meeting instead of circulating resolution. Circulation resolution can be passed only for urgent matters that needs to authenticated at short duration but regular board meeting could not be held in such short time.
Ankur Garg
(Expert)
10 May 2010
No my friend circular resolution is strictly not allowed in the case of section 224(5).
You have to hold a BM to appoint first auditor. Thanks
You have to hold a BM to appoint first auditor. Thanks
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