Day: December 30, 2021

An auditor, before accepting the appointment in place of an auditor who has resigned should verify that the resolution appointing him as the auditor at the general meeting was duly moved and approved by the shareholders. In addition, he should Read More …

Can the Board of directors be authorised by the general meeting to appoint auditors in the event of auditors appointed at an annual general meeting fail to accept the appointment? For knowing the correct legal procedure that should be followed Read More …

A Government company has been defined in section 617 of the Act “as any company in which not less than 51% of the paid-up share capital is held by the Central Government or by any State Government or Governments or Read More …

Section 224A of the Act provides for appointment or re-appointment of auditors in certain cases only by special resolution. It should be remembered that normally an auditor can be appointed by an ordinary resolution. However, in terms of section 224A, Read More …

Where at an annual general meeting, no auditors are appointed or re-appointed, the Central Government may appoint a person to fill the vacancy. It is the duty of the company to give notice of the fact, that no auditor was Read More …

A casual vacancy in the office of the auditor can be filled by the Board of Directors, provided such vacancy has not been caused by the resignation of the auditor. In case of a casual vacancy arising on account of Read More …

The Companies Act, 1956 stipulates the office of auditor in a company as a continuing one; therefore, it has laid down that an auditor shall hold office from the conclusion of the annual general meeting in which he is appointed Read More …

The first auditor of a company can be appointed by the Board of Directors within one month of the date of registration of the company to hold office till the conclusion of the first annual general meeting. If the Board Read More …

Appointment by shareholders Sub-section (1) of section 224 of the Act empowers the shareholders to appoint auditor at each annual general meeting. In fact, this sub-section makes it obligatory that every company irrespective of its nature, i.e., whether a public Read More …

They are governed by section 226 of the Act. The main provisions are stated below : (1) A person shall not be qualified for appointment as an auditor of a company (public or private) unless he is a Chartered Accountant Read More …