06 December 2014
Procedure – where casual vacancy arises due to resignation of existing auditor
1. Intimate the proposed auditor(s) regarding the intention of appointing him/it as auditor and ask whether he/ it is eligible and not disqualified to be appointed as auditor of the company.
2. Obtain consent & certificate from auditor.
3. If Audit Committee required to be constituted under section 177, then obtain its recommendation (Section 139(11)).
4. Call Board meeting for the purpose of following:- • Appointment of auditor in casual vacancy. • Considering that the qualification & experience are commensurate with the size & operations of the company. • Recommending the members to approve the appointment. • Calling of EGM(to be held within 3 months from date of Board meeting).
5. Intimate the Auditor and file with ROC form ADT-1 within 15 days of EGM(since the appointment is not final until approval of members).