At the AGM the reappointment of auditors has got defeated.
Can the Board after the AGM appoint the same firm as Auditor in spite of the fact that their resolution has been defeated in the AGM???
What are the remedies??
pallavi (own) (49 Points)
12 November 2014At the AGM the reappointment of auditors has got defeated.
Can the Board after the AGM appoint the same firm as Auditor in spite of the fact that their resolution has been defeated in the AGM???
What are the remedies??
Avneesh Mishra
(CS Trainee)
(502 Points)
Replied 12 November 2014
Dear Pallavi,
The Appointment of Statutory Auditor has to be ratified by the members at every AGM and the written consent of the auditor to such appointment and a certificate from him is required to be taken in advance.
The notice of the AGM is also required to be send to the auditors of the Company.
Board can only approve the appointment if the same has been approved by the members at AGM.
In my opinoin, you need to call up an EGM for the same.
Regards,
Avneesh Mishra
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