11 November 2010
Can a company appoint joint auditors during mid of the financial year. Moreover, who has authority to appoint the same i.e. whether BOD can appoint the joint auditor or only members in general meeting can appoint the joint auditor? Please quote the relevant section or case laws.
In my opinion the Company can appoint Joint Auditor in the mid of the financial year but can be appointed only by the members in the General Meeting. The Board of Directors do not have the authoirty to appoint Statutory Auditor/s of the Company except filling the casual vacancy other than the vacancy caused due to the resignation of the Auditor.
Please refer section 224 of the Companies Act, 1956 pertaining to appointment of Auditors.
This is my opinion and views of other experts are welcome:-)
Thanks for your opion. I also referred section 224 and according to that directors have authority to appoint auditors only in two cases: 1) First Auditors; and 2) Casual vacancy other than caused due to resignation.
CAclubindia
