Procedure for Appointment of Auditor other than Retiring Auditor

Procedure-Appointment-Auditor-other-than-Retiring


Procedure for Appointment of Auditor other than Retiring Auditor

 – A Special notice shall be required for a resolution at an annual general meeting for
     (b)   providing expressly that a retiring auditor shall not be re-appointed except where the retiring auditor has completed a consecutive tenure of five years or ten years as the case may be.
    –   On receipt of notice of such aresolution, the company should forthwith send a copy of the same to the retiring auditor.
  Where the notice is received well in advance, the company can conveniently send the notice of the resolution to the members by including the same in the notice of the annual general meeting
     The retiring auditor can make a representation. Where he makes any representation in writing to the company and requests for the notification to members of the company , the company should, unless the representations are received by it too late for it to do so:
(a) In any notice of the resolution given to the members state the fact of the representations having been made; and
(b)   Send a copy of the representation to every member of the company to whom notice of the meeting is sent whether before or after the receipt of the representations by the company.
 Where a copy of the representations is not sent as aforesaid, because they are received too late or because of the company’s default, the auditor may (without prejudice to his right to be heard orally) require that the representations shall be read out at the meeting. Obtain a certificate from the auditor to be so appointed to the effect that such appointment, if made, will be in conformity with the limits specified in the Act.
 In the general meeting, the appointment will be considered and the necessary resolution be passed.
  In case of listed company, forward promptly to the stock exchange copies of the notice and a copy of the proceedings of the annual general meeting. After the appointment, the new auditor will be informed of the appointment along with a certified copy of the resolution passed at the meeting. The company shall inform the Registrar in prescribed form along with requisite fee and necessary annexure.
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