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Auditor's death

10 September 2014

While looking for my auditor in the month of August it came to the knowledge that he passed away in the month of January. Hence, no intimation was done to the Registrar nor any new auditor has been appointed.

Now, my question is how to proceed?

How to intimate ROC for the death case? should EGM be called and GNL 2 be filed?? Want to escape penalty..

Please suggest accordingly

Thanks,

CS Pankaj Khanna.

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4 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 10 September 2014

It is a case of casual vacancy to be filled by Board u/s 139(8)(i).

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Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 11 September 2014

Hi Pankaj, it is a case of casual vacancy caused due to death of the auditor...so the vacancy can be filled by the BOD itself...no GM required....

CS Pankaj Khanna (C.S) (521 Points)
Replied 11 September 2014

Originally posted by : Vandana J Doshi
	Hi Pankaj, it is a case of casual vacancy caused due to death of the auditor...so the vacancy can be filled by the BOD itself...no GM required....

Hi Vandana,

there is an issue we have already filed MGT-14 and there we have sent the accounts for approval. Now how to proceed? The auditor passed away in the month of January only...

Should we proceed with EGM? or BM is valid?

urgent plz

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 11 September 2014

It is really surprising and rare case that the company did not know about death of auditor for 7 months. Board should have filled up casual vacancy u/s 139(8) within one month.

It is also not clear how MGT.14 has been filed for approval of accounts. Who had cleared the accounts from auditors' side when the auditor had died? What you have to file with MGT.14 is just copy of Board resolution for approval of accounts which normally does not contain name of auditors.

In any case, you can keep on record documentary evidence about late receipt of intimation of death of auditor and fill casual vacancy in the Board to hold office till next AGM.