Section 142 of the Companies Act 2013 says that remuneration of an auditor shall be determined at the GM except when the first auditor is appointed by the board, in which case it is determined by the board of directors. Therefore, a plain reading of the section leads us to the conclusion that even when the Board appoints the auditor to fill in a casual vacancy, the auditor's remuneration shall be determined by the company at its GM. Is this really the case? If yes, Isn't this extremely inconvenient and not feasible?
As per relevant section of companies act 2013 only those auditor who's are appointed in the AGM, their remuneration is fixed in the Agm. however shareholder may authorised board of director to fix the remuneration of auditor.
(1) The remuneration of the auditor of a company shall be fixed in its general meeting or in such manner as may be determined therein: Provided that the Board may fix remuneration of the first auditor appointed by it. (2) The remuneration under sub-section (1) shall, in addition to the fee payable to an auditor, include the expenses, if any, incurred by the auditor in connection with the audit of the company and any facility extended to him but does not include any remuneration paid to him for any other service rendered by him at the request of the company.
Dear Pinky, As per relevant section of companies act 2013 only those auditor who's are appointed in the AGM, their remuneration is fixed in the Agm. however shareholder may authorised board of director to fix the remuneration of auditor. and in the case of filling of casual vacancy their are also board of director are fixed remuneration however approval is taken from the member with in 3 month if casual vacancy arise due to resignation by the auditor of the company. so in nut shell auditor remuneration is fixed by the board of director. Any other query feel free to contact us Writer CA Chitranjan Agarwal