Every company must appoint its first auditor or an auditing firm within 30 days of registration of the company during the annual general meeting or within 90 days, in an Emergency General Body Meeting by the Board of Directors. The first auditor or the auditing firm appointed will hold office from the conclusion of the meeting in which the appointment of auditor has been made to the time when the sixth annual general meeting is held five years.
Therein, the auditor appointments are reviewed every sixth year. Written Consent: A written consent from the auditor, with sufficient proof to suggest that the person or firm qualifies the criteria provided in Section of the Act, needs to be submitted before an appointment. Appointment Notice: The company should issue an appointment notice to the auditor, and a Form, ADT- 1 is required to be submitted with the registrar within 15 days of the meeting in which the auditor is appointed.
Section The companies listed in Section belonging to the class or classes of companies as mentioned in the section and Rule 5 of the companies audit and auditor rules, , will not: 1. Appoint an individual as auditor for more than one consecutive five-year tenure; 2. Appoint an auditing firm for more than two terms of five consecutive years. Provided, the auditor who has finished his term will not be eligible for reappointment in the same company or the auditing firm who has completed a two-year tenure is not eligible for appointment in the same company for five years.
A three-year transition period is given to comply with this requirement. Although, according to the rules, the five years is calculated with the retrospective effect. Sections to of the Companies Act, give a complete and detailed summary of the role of an auditor as well as the other requirements, such as their appointments or removal from the company payroll.
Ask a Free Legal advice. An auditor or an auditing firm will be re-appointed at the AGM, unless:. The auditor has shown his unwillingness to continue 2.
An auditor appointment resolution has been passed at the general meeting to appoint a new auditor or an auditing firm 3. If at the AGM, no auditor is appointed or reappointed, the existing auditor shall continue in the firm. In case of death of the auditor if it is an individual , the casual vacancy shall be filled within 30 days by the board. He will hold office till the next AGM. In case of resignation of the auditor, the casual vacancy is again filled by the BOD within 30 days, and same approved at the meeting held within 3 months of the appointment.
If an auditor wishes to resign, he must give written notice to the company which includes depositing a statement at the company's registered office setting out any circumstances connected with his ceasing to hold office that he considers should be brought to the attention of the members or creditors of the company.
Even if there are no circumstances that need to be brought to the attention of the members and creditors, a statement to that effect must still be deposited. The company will need to notify Companies House of the resignation and if there are circumstances attached to his resignation, the company must either send a copy of the statement within 14 days to all persons entitled to be sent copies of the accounts or apply to the court.
Removing an auditor from a company. Corporate Info. Company Admin. An auditor of a company may be removed by resolution of the company at a general meeting only if a notice of intention under section 1A has been given to the company.
While the form of the notice of intention is not prescribed by the Corporations Act, an example is:. I, …………. The notice is given to the secretary by a director or a person who is normally authorised to request that a meeting be convened e. If the members of the company wish to seek the removal of the auditor, they should include a request for the company to convene a general meeting in the notice of intention.
Alternatively, in certain circumstances, the members may be able to convene the meeting themselves; however, they may have to pay the expenses of calling and holding the meeting: sections D—F. The notice of intention must be served on the company secretary at least two months before the meeting is to be held. However, if the company calls the meeting after the notice of intention is given, the meeting can be held less than two months after the notice of intention is received — provided the members and others are given the required amount of notice that the meeting will be held: see Step 4.
On receipt of the notice of intention, the company must send a copy of the notice to the auditor and lodge a copy with ASIC as soon as possible: section 2. It is a copy of the notice of intention that is required, not the notice of meeting or notice of resolution sent to members by the company. Within seven days of receiving a copy of the notice of intention, the auditor may make representations in writing to the company and request that a copy of the representations be sent by the company at its expense to every member to whom notice of the meeting is sent: section 3.
The auditor can also require that the representations be read out at the meeting. The company must give a notice of meeting to persons entitled to receive such notice. The notice period for the meeting is 28 days for a listed company section HA and 21 days for an unlisted company: section H.
Short notice of the meeting cannot be given: section H 4. Before the meeting is held, either a director or a member of the company can nominate an auditor whose appointment can be considered at the meeting. If a new auditor has been nominated, the company must give a notice of that nomination to persons entitled to notice of the meeting and the nominated auditor s at the time notice of the meeting is given or not less than seven days before the meeting: section B 3 4.
0コメント