Under Companies Act 2013, the company is required to intimate the Registrar about the appointment of auditor.
Once appointed, the auditor holds office for 5 consecutive years.
Grace period of 3 years is provided to fall in line.
Query No. 1 - A private limited company has had the same statutory auditor which has already held office for more than 5 years. Appointment is due now for FY 2014-15 and 5 years thereafter with Companies Act 2013 being in force and applicable. If the same auditor is appointed, he will hold office for 5 years at a stretch. But then, this would violate the law that same auditor should not be appointed. Then, how do we comply within the 3 years grace provided? What is the way around this?
Query No. 2 - Managing Director was authorized to sign papers for appointment of auditor by resolution held while Companies Act 1956 was in force. Does a fresh resolution needs to be passed for authorizing the Managing Director to sign Form ADT-1? Whether resolution needs to be passed in AGM/EOGM?
Kindly share your knowledge and throw some light on the above matters.
Regards
CAclubindia
