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Section 224 - Appointment of First Auditors on 18th August 2009, 12:47 pm
megha285
Dear All,
As per Section 224 of the Companies Act, 1956, First auditor shd be appted within 1 mnth from the date of Regn, my query is if we are not able to appoint first auditors within one month of incorporation or in the 1st board meeting, then what is the consequence and what is the way out?
Some companies (pvt. ltd) 1st AGM is due in the mnth of Sept, 09 and 1st Auditors are still not appointed.
Plzz advice.
Thanks & Regards,
Megha Doshi
As per Section 224 of the Companies Act, 1956, First auditor shd be appted within 1 mnth from the date of Regn, my query is if we are not able to appoint first auditors within one month of incorporation or in the 1st board meeting, then what is the consequence and what is the way out?
Some companies (pvt. ltd) 1st AGM is due in the mnth of Sept, 09 and 1st Auditors are still not appointed.
Plzz advice.
Thanks & Regards,
Megha Doshi
2 Re: Section 224 - Appointment of First Auditors on 18th August 2009, 4:27 pm
Subramonian
Hi Megha!
Hope i hv clarified ur doubt...
According to Sec 224 (5)(b) if the Board fails to exercise its power ie to appiont First Auditors, then the Company in General Meeting may appiont First Auditors.
As per Sec: 224 (3) Where at an AGM no auditors are appionted, then the Central Government may appiont a person to fill the vacancy.
Consequences: A Company shall within 7 dayz of the Central Governments power
under 224(3) becoming exercisable give notice of that fact to that Government, and if the Company fails to do so, then every office of the company who is in default shall be punishable with fine of Rs 5000/-
As per Sec: 224 (3) Where at an AGM no auditors are appionted, then the Central Government may appiont a person to fill the vacancy.
Consequences: A Company shall within 7 dayz of the Central Governments power
under 224(3) becoming exercisable give notice of that fact to that Government, and if the Company fails to do so, then every office of the company who is in default shall be punishable with fine of Rs 5000/-
Hope i hv clarified ur doubt...
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