Day: January 1, 2022

Primarily, it should be ascertained whether the Articles permit capitalisation of profits; also whether the company had a sufficient number of unissued shares for allotment as bonus shares. In addition, the following steps should be taken :  Inspect the Minute Read More …

Frequently, big companies require auditors to undertake audit of share transfer recorded by the company during the previous year. The object of such an audit is detection of mistakes in the registration of transfers which may have the effect of Read More …

Schedule VI, Part I, requires disclosure of the particulars of any option on unissued share capital. An option on shares arises when a person has acquired a right under an agreement with the company to subscribe for share in the Read More …

The auditor should :  ascertain that the Board of Directors has the authority under the Articles to re-issue forfeited shares;  refer to the resolution of the Board of Directors, reallotting forfeited shares;  vouch the amounts collected from person to whom Read More …

The auditor should :  ascertain that the Articles authorise the Board of Directors to forfeit shares and that the power has been exercised by the Board in the best interest of the company;  verify the amount of call or instalment Read More …

The duties of the auditor in this regard are following :  Verifying that the meeting of the shareholder held to pass the special resolution was properly convened; also that the proposal was circularised in advance among the members.  Confirming that Read More …