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auditor appointment

01 October 2017

if Central Govt hold 40%
and
A Government Company hold 20%
paid up share capital in company
Than who will appointment auditor in company

by CAG or at AGM

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10 Replies

riva pandey (30 Points)
Replied 01 October 2017

by c&ag

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sunil (student) (58 Points)
Replied 02 October 2017

CAG will appoint auditor as company is government

1 Like

Rohit Jain (71 Points)
Replied 02 October 2017

No Govt. Company as per definition given 2(45)
also as per ans given in ICAI Ch 15 questions no 15 of corporate and allied laws.

Sudhir Todkar (CS Professional) (1021 Points)
Replied 02 October 2017

CAG will appoint because it's a government company. If they fails to appoint then board will appoint.

Rohit Jain (71 Points)
Replied 03 October 2017

ICAI k Answer m isko Govt Co NAHI kaha Hai , plz chk.

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Sudhir Todkar (CS Professional) (1021 Points)
Replied 03 October 2017

Don't Rely Completely on answers. First refer the definition of a government company which is defined under sub section (45) of section 2 of companies act 2013.

Later refer the provision of appointment of auditor in case of government and non government company.

sometimes they print incorrectly. Here 60% of the shares are held by Government then obviously CAG will appoint the auditor.

Rohit Jain (71 Points)
Replied 03 October 2017

CG hold 40%
And
"Govt Company" 20 %

Sudhir Todkar (CS Professional) (1021 Points)
Replied 03 October 2017

Hi Rohit Jain

I apologize I overlooked "Government Company 20%"

So in the above case Board should APPOINT the auditor within prescribe time.

As per the definition shares held by government company is not considered to be a share held by government indirectly UNLESS it is a subsidiary of such government company or wholly owned subsidiary company.

I think this question was asked in CA final in November 2016.