describe the main provisions of company law regarding and removal of an.auditor
Answers
Explanation:
Every company, whether public or private company, must appoint an auditor to audit its account.
The Board of Directors are empowered to appoint the first auditors of a company who shall hold office until the conclusion of the first annual general meeting. Such powers must be exercised by the board within one month of the date of registration of the company.
If the board fails to exercise this power, the company in general meeting may appoint the first auditor.
Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall within seven days of the appointment, give intimation thereof to every auditors so appointed unless he is a retiring auditor.
An auditor so appointed unless he is a retiring auditor, shall within 30 days of the receipt from the company of the intimation of his appointment, inform the Registrar in writing that he has accepted/refused to accept the appointment.
In the case of government companies, special provisions have been made by section 619. The auditor of such company shall be appointed or re-appointed by the Central Government on the advice of the Comptroller and Auditor General of India.
Re-appointment of an Auditor:– At the annual general meeting, the retiring auditor by whatever authority appointed (board, annual general meeting or central government) shall be re-appointed except the following cases:-
If he/she is not disqualified for re-appointment.
If he/she has given a notice in writing of his/her unwillingness to be re-appointed.
A resolution is passed to that effect that he/she shall not be re-appointed or that somebody else be appointed at his/her place.
Where a notice has been given to appoint some one else and the resolution can be proceeded with, on account of death, incapacity or disqualification of the proposed auditor.
Appointment of Auditor by Special Resolution:– In the case of company in which 25% or more of the subscribed capital is held. whether singly or jointly by:_
Public financial institution or a Government company or the Central Government or any State Government or
Any financial or other institution established by any Provincial or State Act, in which a State Government holds not less than 51% of the subscribed share capital or
A nationalized bank or an insurance company carrying on general insurance business, the appointment of re-appointment (at each annual general meeting) of an auditor shall be made by special resolution.
Answer:
APPOINTMENT AND REMOVAL OF COMPANY AUDITOR. Every company, whether public or private company, must appoint an auditor to audit its account. The Board of Directors are empowered to appoint the first auditors of a company who shall hold office until the conclusion of the first annual general meeting.
Explanation:
Powers and Duties of Company Auditors
Right to Access Book of Accounts. ...
Receive Notice of General Meetings. ...
Attend General Meetings. ...
Duties of Auditor.