Auditor disqualification
CA. Ritesh Bafna (PROPRIETOR) (145 Points)
11 October 2014CA. Ritesh Bafna (PROPRIETOR) (145 Points)
11 October 2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 12 October 2014
If the auditor is disqualified, how he was appointed as auditor? If he incurred the disqualification after he was appointed as auditor, he vacates the office immediately and there is casual vacancy u/s 141(4) which can be filled by the Board u/s 139(8)(i).
CA. Ritesh Bafna
(PROPRIETOR)
(145 Points)
Replied 12 October 2014
CA. Ritesh Bafna
(PROPRIETOR)
(145 Points)
Replied 12 October 2014
Agrawal sir,
if can also comment if the outgoing Auditor needs to file ADT 3 as the same is not a resignation.?
thank you
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 13 October 2014
1) Appointment of auditors is always an ordinary business and not special business. [Ref. Sec.102(2)(a)(iv)].
2) Appointment of auditor requires ordinary resolution in following cases:
a) Appointment at AGM for 5 years [Sec.139(1) & Rule 3(7)]
b) Appointment of first auditors by EGM if the Board fails to appoint [Sec.139(6)]
c) Appointment of auditor to fill casual vacancy due to rsignation [Sec.139(8)]
d) Appointment of a retiring auditor as auditor. [Sec.140(4)].
3) Appointment of auditor other than retiring auditor or resolution that the retiring auditor shall not be reappointed requires special resolution. [Sec.139(9)(c)].
4) In the given case ordinary resolution is required for appointment of auditor in AGM of a person who was appointed by the Board to filll casual vacancy.
5) The given case is not a case of resignation and hence ADT.3 is not required to be filed.
CA. Ritesh Bafna
(PROPRIETOR)
(145 Points)
Replied 13 October 2014
thank you Agrawal sir. this is going to help me a lot.
Cheers