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What to do if 1st auditor not appointed even in eog meeting?

Madhavi (articleship) (49 Points)

01 September 2016

Hello !

I have a doubt regarding appoitment of 1st auditor.

As per section 139(6) if board fails to appoint 1st auditor within 30days of Incorporation, members shall appoint 1st auditor withing 90 days in EOG.

What if 1st auditor is not even appointed by members in EOG? what steps are to taken in such situation.

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9 Replies

(Guest)

If auditor is not appointed in the EGM...u wont get ur financial statements audited and cant submit it to ROC..that is just one violation...there are many other...read companies act 2013 (sections 139 to 147)

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Madhavi (articleship) (49 Points)
Replied 01 September 2016

ok!

Thanks.

Rishi Agarwal (partner) (28 Points)
Replied 01 September 2016

Companies Act 2013 is silent in this respect...hence in case 1st Auditor is not appointed even in EGOM than it will be deemed that no auditor has been appointed...Thus company has no other option but to appoint the same belatedly in order to give effect such appointment..

Regards

CA Rishi Àgarwal

Madhavi (articleship) (49 Points)
Replied 01 September 2016

Thanks @ Rishi Agarwal,

would also like to know do we need to inform ROC in case of appointmnt of 1st auditor? if yes, what will be the fine or penalty in case of late appointment?

(Guest)

U need to file ADT-1 in 15 days from the date of appointment with the ROC

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Rishi Agarwal (partner) (28 Points)
Replied 01 September 2016

No need to file ADT 1 in case of 1st Auditor Appointed either by Board or in EGOM...

ADT1 needs to be filled only when Auditor is finally Appointed by Company in first AGM..

Madhavi (articleship) (49 Points)
Replied 01 September 2016

Yes, right @ Rishi Agarwal.

Thanks again @ Rishi agarwal , @ ubaid

(Guest)

OOPS !! . thanks for the correction...So the first auditor will hold office till 1st AGM ? and then if he gets reappointed BOD will file ADT-1 ? am i correct sir ?