Appointment of Auditor in Casual Vacancy of Auditor under Companies Act 2013 (Resignation, Death, Disqualification, etc.)

As we are aware that, every company needs to have an auditor. The auditor play key roles in compliance and confirm the maintenance of company’s records and financial statements as per the provisions of the Companies Act, 2013. The audit reports of the company prepared by an auditor are important documents of the company. Thus, the company needs to appoint an auditor at its first Annual General Meeting. Scenario’s where auditor post get vacated due to resignation, death, disqualifications or any other reason, then same needs to be filled up as per provision of Casual Vacancy mentioned in the Company Act 2013.

 

What is Casual Vacancy?

Thought the term casual vacancy not specifically defined in Companies Act but any vacancy caused due to death, resignation, and disqualification of Auditor may be referred as casual vacancy. 

 

   

Procedure

Application for Resignation

1.    Outgoing Auditor should file the application in form ADT-3 to the registrar after resigning from the company.
2.   After submitting resignation and form ADT-3, board meeting shall be organised with all directors for effecting the resignation.
3.   The company shall appoint new auditor to fill the vacancy as per the provision of the company act 2013.
 
Auditor Appointed in Case of Government Company:-
 

•  CAG will appoint new Auditor within 30 days.
•  If CAG does not appoint within 30 days then Board of Directors will appoint New Auditor within next 30 days.

Auditor Appointed in other than Government Company:-

• Company shall convene a board meeting within 30 days from arising of such casual vacancy after giving notice to all directors and pass a resolution for appointment of new Auditor.
•  Issue notice for conduct of Extra Ordinary General Meeting (EOGM) within 3 months from the date of recommendation of the Board.
•  File Form ADT-1 with the ROC within 15 days from the date of appointment in the EOGM.

DISCLAIMER

[The view presented in above blog/ article is from North Pole Management LLP. We believe that the views put forward are is in sync with applicable laws & regulations prevailing at present. Any discrimination, if found by reader can be reached out to the management of the company on the email ID of contact@northpolemanagement.in 

One is always welcome to reach out to us for any assistance, help or for advisory services in relation to the above mentioned topic in this article or any related topics relevant to us]