Resign of previous auditor and appt of new auditor agm

This query is : Resolved

shalu (Querist)
Follow

13 August 2016 Dear Sir/ Mam

In a company an auditor has resigned in AGM having 3 years remaining audit tenure. Weather it will result in a casual vacancy.

Moreover, weather the appointment of new auditor will be for 1 year or 5years. And weather the appointment of new auditor will be made by board and later approved by members or the Board will only make recommendation and appointment will be made by members in AGM.

Please give your advice in this regard.

Thanks & Regrds
Shalu Goyal

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
Follow

16 August 2016 Any new auditor appointed would be applicable for period of 5 years. If it is a casual vacancy, the auditor can be appointed by Board and later can be approved in the AGM.

shalu

shalu (Querist)
Follow

17 August 2016 Thanks mam
Mam please clarify the doubt if previous auditor resigns in AGM before completion of his/ her five year period weather it is a casual vacancy or not.

Thanks & Regards
Shalu Goyal

Upgrade to CAclubindia Pro. Subscribe Now!

ACA Anurag

ACA Anurag (Expert)
Follow

23 August 2016 Dear Shalu,

It will result into casual vacancy.

There are two reasons of Casual Vacancy of Auditor:

I. Casual Vacancy due to reason other than Resignation of Auditor.

II. Casual Vacancy because of Resignation of Auditor

New auditor will be appointed by BOD but it should be approved by shareholder in Extra ordinary general meeting as its case of casual vacancy.

Hope your query is resolved

Kindly like if my response has helped you

Message likes : 1 times

shalu

shalu (Querist)
Follow

24 August 2016 Dear Sir
Thanks but as AGM is near can approval by shareholders be made in AGM instead of EGM.

Thanks
Shalu

ACA Anurag

ACA Anurag (Expert)
Follow

24 August 2016 Dear shalu,

As per rule it should be approved in Extra ordinary general meeting and not AGM.

Hope your query is resolved

Kindly like if your are satisfied with my answer

Message likes : 1 times