Do shareholders elect auditors?

Do shareholders appoint auditors?

The directors may appoint the first auditor (or the first following a period of exemption from audit) but otherwise the shareholders appoint an auditor by passing an ordinary resolution during a ‘period for appointing auditors‘ or where the directors had power to appoint an auditor but have failed to make an …

Are auditors appointed by shareholders or directors?

Auditors are generally appointed by the members to whom they report by ordinary resolution while directors have the power to appoint auditors at any time before the company’s first period for appointing auditors; following a period during which the company (being exempt from audit) did not have any auditor, at any time …

When can shareholders appoint auditors?

1. At each Annual General Body meeting of the company, the shareholders shall appoint an auditor for the company. 2. The auditor so appointed shall hold office until the conclusion of the subsequent annual general body meeting.

Who Cannot be appointed auditors of a company?

An auditor must be independent of the company, and therefore, a person cannot be appointed as an auditor if they are:

  • an officer or employee of the company or an associated company.
  • a partner or employee of such a person, or a partnership of which such a person is a partner.
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Who appoints auditors in a private company?

the Registrar may appoint an auditor.

How are auditors of a company appointed?

The appointment is done by the members for a Maximum term of 5/10 consecutive years. The appointment is done by the Comptroller and Auditor General of India within 180 days from the 1st of April. The appointment is by the members within 3 months of the recommendations of Board and he will hold office till the next AGM.

Are auditors appointed every year?

An Auditor is appointed for a period of 5 years and is eligible for Re-appointment after the expiry of period of 5 years.

Who appoints internal auditor?

An internal auditor is an auditor who is appointed by the Board of directors of the company in order to carry out the internal audit function. Generally an employee of the company acts as an internal auditor, whereas some companies appoint an external expert as an internal auditor.

Can an auditor can hold shares of a company?

Further, As per sub-rule (1) of rule 10, for the purpose of proviso to sub-clause (i) of clause (d) of sub- section (3) of section 141, a relative of an auditor may hold securities in the company of face value not exceeding Rs. 1 lakh. … The word “securities” has been defined in clause (81) of section 2 of the Act.

Can directors appoint auditors?

In private companies, the directors appoint the first auditor of the company. The members may then appoint or re-appoint an auditor at a meeting of the company’s members, or by written resolution, within 28 days of the directors sending the accounts to the members.

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Who can remove the company auditor?

As per sub-section (1) of section 140, the auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf.