December 30, 2021

A Government company has been defined in section 617 of the Act “as any company in which not less than 51% of the paid-up share capital is held by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments and includes […]

Section 224A of the Act provides for appointment or re-appointment of auditors in certain cases only by special resolution. It should be remembered that normally an auditor can be appointed by an ordinary resolution. However, in terms of section 224A, a company in which not less than 25% of the subscribed capital is held by

Where at an annual general meeting, no auditors are appointed or re-appointed, the Central Government may appoint a person to fill the vacancy. It is the duty of the company to give notice of the fact, that no auditor was appointed in the annual general meeting, to the Central Government within seven days of the

A casual vacancy in the office of the auditor can be filled by the Board of Directors, provided such vacancy has not been caused by the resignation of the auditor. In case of a casual vacancy arising on account of resignation, only the company in general meeting can fill the vacancy by appointing another auditor.

The Companies Act, 1956 stipulates the office of auditor in a company as a continuing one; therefore, it has laid down that an auditor shall hold office from the conclusion of the annual general meeting in which he is appointed till the conclusion of the next annual general meeting. Excepting cases of appointment of the

The first auditor of a company can be appointed by the Board of Directors within one month of the date of registration of the company to hold office till the conclusion of the first annual general meeting. If the Board fails to appoint the first auditor, the company in general meeting is empowered to make

Appointment by shareholders Sub-section (1) of section 224 of the Act empowers the shareholders to appoint auditor at each annual general meeting. In fact, this sub-section makes it obligatory that every company irrespective of its nature, i.e., whether a public or private or a company with unlimited liability, limited company; non-profit company or profit oriented

They are governed by section 226 of the Act. The main provisions are stated below : (1) A person shall not be qualified for appointment as an auditor of a company (public or private) unless he is a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949; provided that a firm whereof all

Sections 224 to 233 of the Companies Act, 1956 (hereinafter referred to as the Act unless otherwise mentioned) deal with provisions relating to audit of companies. Therefore, it is quite important to understand these provisions very carefully. You may also study sections 209 to 223 relating to “Accounts” of companies for better understanding of the