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Auditor's Appointment

Vineet Kumar Sharma (Chartered Accountant) (316 Points)

19 February 2011

What is d procedure and fees for the appointment of an Auditor to fill d casual vacancy.?

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3 Replies

nidhigoel89 (Company Secretary ) (594 Points)
Replied 19 February 2011

Hello!

There are different condition for appointment of auditor.......

When casual vacancy caused by resignation of auditor then that should be filed in GM by passing OR.

In case of death or disqualification of auditor the BOD of Co. can appoint the new auditor.

Rest Abt fee then no fee is to be paid, a form 23B is to be filed which is the responseblity of the auditor.

I tried to answer ur query........rest other views are welcomed.......

Regards

Nidhi

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Mohammed (CS, Mcom, LLB) (857 Points)
Replied 19 February 2011

Please read the below as per Section 224 which is for Appointment and Remuneration of Auditor.

Hope below text will be useful for you...

(6)(a) The Board may fill any casual vacancy in the office of an auditor; but
while any such vacancy continues, the remaining auditor or auditors, if any, may
act:
Provided that where such vacancy is caused by the resignation of an auditor,
the vacancy shall only be filled by the company in general meeting.
(b) Any auditor appointed in a casual vacancy shall hold office until the
conclusion of the next annual general meeting.
(7) Except as provided in the proviso to sub-section (5), any auditor
appointed under this section may be removed from office before the expiry of his
term only by the company in general meeting, after obtaining the previous
approval of the Central Government in that behalf.1
(8) The remuneration of the auditors of a company—
(a) in the case of an auditor appointed by the Board or the Central
Government, may be fixed by the Board or the Central Government, as
the case may be2; and*
3[(aa) in the case of an auditor appointed under section 619 by the Comptroller
and Auditor-General of India, shall be fixed by the company in general
meeting or in such manner as the company in general meeting may
determine;*]
(b) subject to clause (a), shall be fixed by the company in general meeting or
in such manner as the company in general meeting may determine.
For the purposes of this sub-section, any sums paid by the company in
respect of the auditors' expenses shall be deemed to be included in the expression
"remuneration".

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 25 February 2011

Agree with Nidhi regarding filling up of casual vacancy of auditor.

The remuneration of auditors shall be approved by the Board if the Board appoints the auditor. On the other hand if the auditor is appointed by members in the General Meeting, the remuneration may be fixed in such manner as the company in general meeting may determine.