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Auditor's Remuneration

Others 379 views 3 replies

Mohit Singla

Involved in Practice

326 Points Posted on 28 August 2016

As per section 142, remuneration shall be fixed by company in GM
and in case of 1st auditor by BOD.
now my query is 'in case of casual vacancy who will fix the remuneration?'
because appointment is made by BOD
but after appointment of auditor as per section 139(8) of the company..their is no requirement of conducting any EGM where members can fix the remuneration
and BOD can fix remuneration of 1st auditor only as provided in section 142
what will be the answer to above query..please give your views

Replies (3)

P C Agrawal

Registered independent director Past Ch

8229 Points Posted on 29 August 2016

Power to "appoint" includes power to fix remuneration since there cannot be a valid contract without consideration. Hence Board has implied power u/s 139(8) to fix remuneration of auditors in case of casual vacancy.

Nimita Jain

Company Secretary

87 Points Posted on 29 August 2016

If Casual vacancy is due to reason other than resignation - such vacancy shall be filled by BOD and remuneration shall be fixed by BOD.

But if casual vacancy is due to resignation - such vacancy shall only be filled by Company in general meeting and remuneration shall be fixed by Members in general meeting.