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Appointment of auditor in case of resignation

Sanjay K Pal (Employee) (133 Points)

20 December 2012

Please let me know the "STPES TO BE FOLLOW FOR APPOINTMENT OF AN AUDITOR OF A PVT. LTD. CO. " in case of resignation of previous auditor.

Last AGM date : 29.09.2012

Date of resignation of previous auditor : 24.11.2012

Please mention the dates of various meetings, notice etc.

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6 Replies

Sneha (Company Secretary) (1594 Points)
Replied 20 December 2012

Call a Board Meeting on 24.11.2012 or later and pass a resolution to hold EGM. If Board Meeting is held on 24.11.2012 then date of EGM can be 17.12.2012 or later (23 clear days difference should be there between the date of Board Meeting and EGM ).

Pass this resolution as ordinary resolution in the Board Meeting.

Resolution to be passed at Board Meeting calling EGM

APPOINTMENT OF M/S. __________, CHARTERED ACCOUNTANTS AS THE AUDITORS OF THE COMPANY TO FILL THE VACANCY CAUSED BY THE RESIGNATION OF _________, CHARTERED ACCOUNTANT, THE PRESENT AUDITORS OF THE COMPANY

The Chairman informed the Board that M/s. _________, Chartered Accountants resigned from their office as auditors of the Company. Therefore the Chairman expressed his opinion to appoint another auditor in place of M/s. ___________, subject to the approval of shareholders in General Meeting.

The Board expressed its satisfaction to the matter discussed and passed the following Resolution.

“RESOLVED that an Extra Ordinary General Meeting of the shareholders be called on (Day, Date and Time) for the appointment of Auditors of the Company. The draft notice along with explanatory statement thereto as placed before the Board be and is hereby approved and the same be sent to the shareholders whose name appear in the register of members as on (Date of this Board Meeting).”

“RESOLVED further that in the said Extra Ordinary General Meeting of the Company the following resolution be moved:

“RESOLVED that pursuant to provision to Sub –section (6) (a) of section 224(5) of the Companies Act,1956, M/s. ___________, Chartered Accountants, (Address), be and are hereby appointed as the auditors of the Company to fill the vacancy caused by the resignation of M/s. ____________, Chartered Accountants, to hold office from the date of this meeting until the conclusion of the next annual general meeting of the Company at a remuneration as may be fixed by the Board of Director in consultation with the said Auditors.”

After EGM when appointment of Auditor is approved by shareholders, the auditor have to file Form 23B within 30days from thje date of such appointment.

Please feel free to ask for any further clarification.

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Tanveer Md Masood (Indispensable) (361 Points)
Replied 03 January 2013

Reappointment of auditor basically takes place a fter the first auditor appointed under sec.224 of the companies Act has completed his term or tenure or if he resigns from his office before completing hs term. Moreover, a uditors can be reappointed by the board or shareholders in the extraordinary general meeting to fill the vacancy caused by resignation. After being apponted as auditor , he should inform the company that he has accepted the appointment and is willing to work.

Regards

Tanveer mohammad Masood

Sneha (Company Secretary) (1594 Points)
Replied 03 January 2013

Originally posted by : Tanveer Md Masood
	Reappointment of auditor basically takes place a fter the first auditor appointed under sec.224 of the companies Act has completed his term or tenure or if he resigns from his office before completing hs term. Moreover, auditors can be reappointed by the board or shareholders in the extraordinary general meeting to fill the vacancy caused by resignation. After being apponted as auditor , he should inform the company that he has accepted the appointment and is willing to work. Regards Tanveer mohammad Masood