Question

Subsequent auditor of non-government company
is a appointed
By Members in EGM by passing ordinary
resolution
By Members in AGM by passing special resolution
By Members in AGM by passing ordinary
resolution
By BoD in Board Meeting​

Answer 1

Answer:

First proviso to Sub-rule (7) of Rule 3 provides that the auditor appointed at annual general meeting shall be subject to ratification in every annual general meeting till the sixth such meeting by way of passing of an ordinary resolution.

The act has introduced a new concept of ratification of auditors at every annual general meeting. Here ratification means formal assent of shareholders for continuance as auditors.

Explanation of Rule 3- For the purposes of this rule, it is hereby clarified that, if the appointment is not ratified by the members of the company, the Board of Directors shall appoint another individual or firm as its auditor or auditors after following the procedure laid down in pls thanks me