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In case the appointment of an auditor is not ratified by the shareholders at annual general meeting as requirement....

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ROHIT SINGH asked over 2 years ago

In case the appointment of an auditor is not ratified by the shareholders at annual general meeting as required under proviso to Section 139(1), what recourse does the company have ?

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3 Answers
Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Rohit, - Explanation to Rule 3(7) of the Companies (Audit and Auditors) Rules, 2014 provides 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 this behalf under the Act

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pushkala Santhanam answered over 2 years ago

Section 139(1) of the Companies Act, 2013 states that the company shall place the appointment of auditor for ratification by members at every annual general meeting. Rule 3 of the Companies (Audit and Auditors) Rules, 2014 contains provisions for the manner and procedure of selection and appointment of Auditors. Accordingly, the Explanation to Rule 3(7) clarifies that if the appointment of the auditor 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 this behalf under the Act.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that In case the appointment of an auditor is not ratified by the shareholders at annual general meeting as required under proviso to Section 139(1), what recourse does the company have ? Let me informed that Explanation to Rule 3(7) of the Companies (Audit and Auditors) Rules, 2014 provides 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 this behalf under the Act. Hope answer was helpful to you Regards, Arjun Pratap Singh

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