Appointment of first auditors

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Simant Prakash (Querist)
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18 February 2009 Dear Memebers
Is there a maximum time limit for holding an EGM for appointment of first auditors, where the board as failed to make the appointment within stipulated time. What are the implications under Companies Act

Thanks
Simant Prakash

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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18 February 2009 There is no need to inform ROC for appointment of first auditors. So you can pass resolution in the back date.

Simant Prakash

Simant Prakash (Querist)
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18 February 2009 Thanks Tilak... But it would not be a authentic way. Backdating is something that should not be encouraged with clients.

Request if you can please let me know the position under law. Is there a time limit for holding the EGM for this appointment. Or should the Company inform CG in case the same is not done in reasonbale time

Many thanks

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Jagruti (CS)

Jagruti (CS) (Expert)
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21 February 2009 In case of Pvt co , auditor can be appointed in general meeting(GM) but before AGM.

While in Public Co., it is desirable to appoint before 5 months in GM as auditor has to certify Statutory report.

Hence there is no specific time limit for holding GM.Hence there may not be any penalty

Simant Prakash

Simant Prakash (Querist)
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22 February 2009
I agree. the law looks silent for private companies and hence the Company should be fine in making an appointment anytime before the AGM

Thanks Jages and Tilak for the assistance.