What if auditor is not appointed within 30 days?
If the board fails to appoint such auditor within the next 30 days, it shall inform the members of the company who shall appoint such auditor within 60 days at an extraordinary general meeting. Such auditor shall hold office till the conclusion of the first annual general meeting.
What if auditor is not appointed in AGM?
Therefore, If at an annual general meeting, no auditors are appointed or reappointed, the board of directors appoints a person to fill the vacancy.
Is it mandatory to appoint auditor for 5 years?
The subsequent Auditor i.e. appointed after the first Auditor for specified class of companies shall hold the office: Individual: For one term of 5 years and then a cooling period of 5 years is to be provided i.e. can be re-appointed after a break of 5 years.
When at an annual general meeting of a company no auditor is appointed or reappointed in that case?
(3) Where at an annual general meeting no auditors are appointed or re- appointed, the Central Government may appoint a person to fill the vacancy.
What happens if a company fails to appoint an auditor?
If the Board fails to appoint First Auditor within 30 days from the date of registration/Incorporation of the company, it shall inform the members of the company and the members shall make the appointment of first auditor within 90 days of information at an Extra-Ordinary General Meeting.
Can statutory auditor be appointed for 1 year?
Sol. According to Section 139(2): No Company can appoint any Auditor for a period less than 5 year. After completion of 3 year Transitional period as given in third proviso of Section 139(2).
What happens when auditor becomes subject to any of the disqualifications after his appointment?
(5) If an auditor becomes subject, after his appointment, to any of the disqualifications specified in subsections (3) and (4), he shall be deemed to have vacated his office as such.
Which of the following is a disqualification to become a statutory auditor of a company?
Persons Disqualified for Appointment as Auditor Holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company. However, the relative may hold security or interest in the company of face value not exceeding one thousand rupees.
What is the penalty if you fail to appoint an auditor?
There is no fine or penalty if you fail to appoint an auditor. Notwithstanding anything contained in sub-section (1), the first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within thirty days from the date of registration of the company and in the case of failure of the Board to…
What is the punishment for Auditor General of India?
The auditor shall be punishable with fine which shall not be less than Rs. 25,000/- (Rupees twenty-five thousand) but which may extend to Rs. 5 Lac (Rupees five lakh)
What are the provisions related to appointment of an auditor?
COMPILATION OF PROVISIONS RELATING TO APPOINTMENT OF AUDITOR Need of Auditor: All the companies registered under the Companies Act, 2013 or any previous Company law, whether public or private and whether having a share capital or not, are required to maintain proper books of accounts under the provisions of section 128 of the Companies Act, 2013.
Why do we appoint statutory auditor?
It involves an intelligent scrutiny of the books of account of a Company with reference to documents, vouchers and other relevant records to ensure that the entries made therein give a true picture of business Therefore, there is need to appoint Statutory Auditor. A. Appointment of First Auditor of the Company (By BM or by EGM) i.