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Resignation of statutory auditor

chandni mathur (CS) (84 Points)

05 September 2017

If statutory auditor resign after AGM then EGM should be call or not?

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Ravi Kiran Vustela (Knowledge Seeker) (1353 Points)
Replied 05 September 2017

Yes...
Any casual vacancy in the office of an auditor shall—

(i) in the case of a company other than a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor-General of India, be filled by the Board of Directors within thirty days, but if such casual vacancy is as a result of the resignation of an auditor, such appointment shall also be approved by the company at a general meeting convened within three months of the recommendation of the Board and he shall hold the office till the conclusion of the next annual general meeting

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Shrijay Sheth (Co-Founder) (2692 Points)
Replied 06 September 2017

The resignation of the Auditor after his/its appointment in AGM is considered as Casual Vacancy u/s 139(8) of Companies Act, 2013. Section 139(8) deals with appointment of auditor in case of casual vacancy arising due to casual vacancy. The procedure is enumerated below in brief:

In case of company other than Government Company:

The casual vacancy shall be filled by the Board of Directors within 30 days of the resignation.
The appointment made shall be further approved by the Members of the company in General Meeting within 3 months from the date of recommendation by BOD.
Intimation to RoC by filing of form ADT – 1 within prescribed time with requisite fees.

In case of Government Company or Company owned/ controlled by CG/SG/CG & SG:

The casual vacancy shall be filled by the C&AG within 30 days of the resignation.
In case, C&AG fails to fill the vacancy, the BOD shall fill the vacancy within next 30 days.
Intimation to RoC within prescribed time by filing Form ADT – 1 with requisite fees.

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