ROHIT SINGH
asked
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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Archana
answered
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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Pushkala Santhanam
answered
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
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
