Procedure for Appointment of Statutory Auditors
Authored by: Madhusudhana D H |
A series of simple steps should be followed while appointing statutory auditors.
- An Auditor is normally reappointed at the A.G.M. Therefore, the Company should obtain a written certificate from the Auditor that the re-appointment, if made, will be in accordance with the limits specified in Section 224(1B).
- The Company convening the A.G.M., should pass ordinary resolution in the A.G.M. appointing the retiring Auditor as Auditor of the Company, who shall be holding the office till the conclusion of next A.G.M. and the resolution should also contain details of his remuneration and firm’s registration number.
- The Company should intimate the Auditor about his appointment within 7 days of the passing of the Resolution appointing him.
- The Auditor should inform the Registrar of Companies in Form No. 23B within one month of the receipt of the intimation from the Company that he has accepted or refused to accept his appointment.