14 October 2014
Can please anyone guide me about the following query.
Statutory Auditor of a PVT.LTD. (Authorised and paid up cap. rs. 100000-/)company, wants to resign. his firm has not completed statutory audit for the FY 2013-14 for some reasons.
The company also want to appoint another Auditor For the SAID financial year 2013-14 and also for the next period.
The date of AGM wherein the said Auditor was appointed for the FY 2013-14 was 30th sept. 2013.
14 October 2014
As per section 139(8) of the Companies Act, 2013 any casual vacancy, shall be filled by the Board within 30 days. If the vacancy has arisen due to resignation of auditor then such appointment shall also be approved by the company at a general meeting convened within 3 months of the recommendation of the Board.
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(to be attached in form GNL-2 as per MCA circular 09/2014 dated 25th April, 2014) within 15 days of EGM(since the appointment is not final until approval of members).
As per section 140(2) the Auditor who has resigned from the company shall file within a period of 30 days from the date of resignation, a statement in the prescribed form with the company and ROC indicating the reasons and other facts as may be relevant with regard to his resignation in form ADT-3
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