ROHIT SINGH
asked over 3 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 ?
Archana
answered over 3 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
Pushkala Santhanam
answered over 3 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.
ARJUN PRATAP SINGH
answered over 3 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
