Vinothbabu.S (Articled Assistant) (145 Points)
24 February 2009The auditor of X Ltd is invited by Board of Directors to attend the Annual General Meeting of X Ltd., . But auditor did not attend AGM.
now can the Board of Directors sue the auditor not for attending the Annual General Meeting?
Are Companies Act 1956, AAS or Chartered Accountants Act 1949 explaining about such matters?
Please provide your answer. advance thanks for all.
With Regards,
S.Vinothbabu
Attending AGM is an auditor's "RIGHT" and not a "DUTY".
Neither his prescence nor his abscence can be questioned.
But his RIGHT becomes a DUTY when he has signed & issued the audit report and subsequently an event arises which forces him to change his opinion. Under such circumstance, he is under an obligation to attend AGM and reconsider his opinion .
Vinothbabu.S
(Articled Assistant)
(145 Points)
Replied 25 February 2009
Thank you. Suppose if he does not reconsider his opinion, will he be punished?
Vinothbabu.S
(Articled Assistant)
(145 Points)
Replied 25 February 2009
No friend. I am not thinking so. My view is that "He is a company auditor.but his Attention to the AGM is only permissable and not strictly. Here All the acts are supporting auditors in this case."
Laws are created by humans only. why are such more independence are given to the auditors?
In the AGM, the members of the company are seeking auditors to ask some questions. But the auditor is absence. Now what will be the position of auditors? Then, there is no meaning to conduct the AGM.
So in this case, the auditor should compulsory attend the meeting. So now how will the companies act treat the auditor?
First u shud understand one thing. AGM is not for asking questions to the auditor. t is for all other purpose other than this.. And u shud be happy that the acts are in favour of auditors. You don want to get yourself into trouble do you??? No point in arguing anymore after clarifying ur doubt..
Vinothbabu.S
(Articled Assistant)
(145 Points)
Replied 26 February 2009
Thank you friend. you clarified me. I am new to this course.
I completed CPT. now doing PCC. now i understand that AGM is not for asking questions only. there are more other than this.
ok. thanks again.
Pulkit Agarwal
(CA. Final)
(455 Points)
Replied 08 March 2009
I would like to say that the secratarial standards by ICSI impose a duty upon the auditor to attend the AGM. Forbidding so will lead to a specific qualification note in the complience certificate of the company
CA Manoj Tilokani
(JOB)
(163 Points)
Replied 20 June 2009
NO.
THE BOARD CAN NOT SUE THE AUDITOR.
BECAUSE IT IS HIS POWER NOT HIS DUTIES...
CAclubindia
