lakshmi (CA ) (54 Points)
21 September 20111)What are the consequences if the company deos not hold board meeting ithin statutory limit.
2)Should internal audit report be considered by board.what is the role of audit commitee in it.is it mandatory that internal audit report be considered by audit commitee and later on be forwardwe to board before annual accounts are placed before the shareholdres.
RG - A Helping Hand
(Company Secretary)
(13867 Points)
Replied 21 September 2011
There is no time limit prescribed under companies act, 1956 for holding board meeting like prescribed for AGM etc. So no penaulty as far as time is concerned.
But as per section 285 you have to hold at last 4 board meeting in a year.
4 board meeting here means one meeting for each quarter.
RG
RG - A Helping Hand
(Company Secretary)
(13867 Points)
Replied 21 September 2011
I am presuming that you are asking for an unlisted company. It is a good practice if internal audit report be considered by BOD.
Consideration of internal audit report by audit committee is dependent on the terms of reference of audit committee.
But one thing is sure there is no need to place internal audit report before the shareholders.
lakshmi
(CA )
(54 Points)
Replied 23 September 2011
Sir
what you presumed is correct.The company is unlisted.the company is subject to provisions of 292A.
292A says that internal auditor has to be an invitee to meeting of audit commitee.The company is bound under Caro to appoint internal auditor.SO is it possible for audit commitee to consider the final accounts without actually receiving internal audit report if the terms of reference do not contain considering internal audit report.I am asking so because internal auditor has to be an invitee to meeting of audit commitee.
lakshmi
(CA )
(54 Points)
Replied 23 September 2011
If the company fails to hold one board meeting in each quarter will the company secretary be considered as an officer in default
RG - A Helping Hand
(Company Secretary)
(13867 Points)
Replied 23 September 2011
| Originally posted by : lakshmi | ||
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If the company fails to hold one board meeting in each quarter will the company secretary be considered as an officer in default |
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Yes he will be considered as OID. However penalty mentioned u/s 629A will be applicable i.e Rs. 5000 or Rs. 500 is default if a continuing one.
RG
RG - A Helping Hand
(Company Secretary)
(13867 Points)
Replied 23 September 2011
Final authority to approve annual account is with Board. Hence there is no harm if audit committee considered the final accounts without actually referring to internal audit report and forward accounts to Board for final approval.
RG
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