A Private Limited Company appointment CA X as Auditor in AGM held on mid of Sept 2009 . But CA X refused appointment. Is CA X required to file Form 23 B? What is the procedure to appoint a New Auditor.?
Sivaraman A R (.) (1040 Points)
24 January 2010A Private Limited Company appointment CA X as Auditor in AGM held on mid of Sept 2009 . But CA X refused appointment. Is CA X required to file Form 23 B? What is the procedure to appoint a New Auditor.?
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 25 January 2010
Dear Siva,
In this case CA refuses to be appointed as auditor, so it will be deemed that there is no appointment made in AGM.. So that CA is not reqd to file form23B...
so as per Sec 224(3), the company is required to intimate central govt in form 24A within 7 days of conclusion of AGM.. On receipt of notice from the company, CG shall fill the vacancy.
Adarsh
Batul
(Article assistant)
(207 Points)
Replied 25 January 2010
According to Sec 224 (1A) every auditor so appointed has to intimate in writing to the registrar of Companies in 30 days after the receipt of intimation by the company whether accepted or refused to accept the appointment in Form 23B.
And since he refused to accept the appointment in such case it can be deemed that no auditor has been appointed by the company in its general meeting. Accordingly the Central Government
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 25 January 2010
| Originally posted by : Batul | ||
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According to Sec 224 (1A) every auditor so appointed has to intimate in writing to the registrar of Companies in 30 days after the receipt of intimation by the company whether accepted or refused to accept the appointment in Form 23B. And since he refused to accept the appointment in such case it can be deemed that no auditor has been appointed by the company in its general meeting. Accordingly the Central Government |
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Dear Batul..
There is no space or column available in FORM23B for refusal of being auditor by CA....
So no need to file form23B in case of refusal by CA..
Adarsh
Pooja Rane
(Working)
(159 Points)
Replied 25 January 2010
| Originally posted by : Adarsh | ||
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Dear Siva,
correctly said tht sec 224 (3) is applicable |
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Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 25 January 2010
In your case refusal by newly appointed auditor to accept the position of statutory auditor is equal to no auditors are appointed or re-appointed at an annual general meeting of a company. In this case power of CG u/s Section 224(3) become exercisable.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 25 January 2010
Appointment of auditor by the Central Government (Regional Director)
Section 224(3) provides that if no auditors are appointed or re-appointed at an annual general meeting of a company, the Central Government may appoint a person to fill the vacancy. Therefore, the power of the Central Government to appoint auditors becomes exercisable when no auditors are appointed or reappointed at an annual general meeting of a company.
The Company is required to give intimation electronically to the Regional Director (Powers of the Central Government were delegated to the Regional Director) vide Notification No. GSR 288(E) dated 31st May, 1991) in new e-Form 24A prescribed by Notification No. GSR 56(E) dated 10th Feb., 2006.
Obligation has been cast on the company that within seven days of the Central Government's power u/s 224(3) becoming exercisable, it shall give a notice of that fact to that Government; and if a company fails to give such notice, the company, and every officer of the company who is in default, shall be punishable with fine which may extend to five thousand rupees.
Circular No. 5 of 1972, dated 21-2-1972 inter alia provides that the Government's power to appoint auditors under section 224(3) becomes available where at an AGM no auditors are appointed or re-appointed. Where auditors are not appointed or re-appointed in accordance with the provisions of the Act including section 224(2), as read with sections 225 and 190, section 224(3) becomes attracted in the matter.
No fee is required to be paid for intimation under section 224(4)
As per the Department's Letter No. 35/16/69-CL-III, dated 1-11-1971 the Department is of the view that notices under section 224(4) cannot be considered as applications under the Companies (Fees on Application) Rules and as such are not chargeable with the prescribed fees.
On receipt of such notice in the prescribed e-Form 24A, it is the statutory duty of the Regional Directors to appoint auditors under section 224(3). No fee is chargeable on such notices for appointment of auditors under section 224(3).
Batul
(Article assistant)
(207 Points)
Replied 27 January 2010
Dear Adarsh,
This is the requirement of Section 224 (1A) that every auditor has to intimate whether he has accepted or refused to accept the appointment in form 23 B and KINDLY GO THROUGH FORM 23B IT HAS TO BE MENTIONED IN IT WHETHER THE APPOINTMENT HAS BEEN ACCEPTED BY THE AUDITOR OR NOT.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 27 January 2010
| Originally posted by : Batul | ||
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Dear Adarsh, This is the requirement of Section 224 (1A) that every auditor has to intimate whether he has accepted or refused to accept the appointment in form 23 B and KINDLY GO THROUGH FORM 23B IT HAS TO BE MENTIONED IN IT WHETHER THE APPOINTMENT HAS BEEN ACCEPTED BY THE AUDITOR OR NOT. |
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Agree with Batul that on refusal to accept Audit form-23B is required to be filed.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 27 January 2010
| Originally posted by : Batul | ||
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Dear Adarsh, This is the requirement of Section 224 (1A) that every auditor has to intimate whether he has accepted or refused to accept the appointment in form 23 B and KINDLY GO THROUGH FORM 23B IT HAS TO BE MENTIONED IN IT WHETHER THE APPOINTMENT HAS BEEN ACCEPTED BY THE AUDITOR OR NOT. |
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Yes Batul..Its my mistake.. Thanks for correcting me..
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 27 January 2010
| Originally posted by : Adarsh | ||
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Originally posted by : Batul Dear Adarsh, This is the requirement of Section 224 (1A) that every auditor has to intimate whether he has accepted or refused to accept the appointment in form 23 B and KINDLY GO THROUGH FORM 23B IT HAS TO BE MENTIONED IN IT WHETHER THE APPOINTMENT HAS BEEN ACCEPTED BY THE AUDITOR OR NOT. Yes Batul..Its my mistake.. Thanks for correcting me.. |
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Simply love your spirit. Absolutely incamparable and honest. Congrats.
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 27 January 2010
| Originally posted by : Ankur Garg | ||
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Simply love your spirit. Absolutely incamparable and honest. Congrats. | |
Thanks for ur Appreciation & Support Sir....
I believe that "Jo galti karta hai aur apne aap ko correct karta hai oose success milti hai.. but jo galti karta hai aur apni galti ko accept karta n apne aap ko correct karta hai wo successful man banta hai... There is gap between perfection (success milta) & excellence (Successful ban na)"
Aur aap jaise logo ka saath mil jaaye to phir motivation ki kami nahi..
Thanks again sir...
Adarsh
Batul
(Article assistant)
(207 Points)
Replied 28 January 2010
Adarsh,
As Ankur Sir said ur spirit is really great and nothing to be sorry about we all are here to learn and gain knowledge and we are learners sp its quite obvious to make mistakes.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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