Every company shall at its First AGM appoint an Individual or firm as an auditor who shall hold office from conclusion of that AGM till conclusion of sixth AGM and thereafter till conclusion of every sixth AGM
E.g, if your company was registered on 21st July 2014, then, your Financial year ends on following 31st March i.e. 31st March 2015, so first AGM should be held on 31st Dec 2015 (within 9 months from the end of first FY).
So, now the company must appoint its First Auditors for a term of 6 years on its First AGM i.e on 31st Dec 2015.
E.g if your company has its Second AGM for FY 2014-15, then, due date of AGM for this company would be 30th Sep 2015 (within 6 months from ending of FY). So, this company is not required to appoint auditors but they need to ratify the appointment of Auditors in this AGM by passing Ordinary Resolution. So, for ensuing 6th AGM, the company has to place the matter for Ratification for Appointment of Auditors. THis is basically confirmation of auditors appointment.
There is no requirement to file Form ADT 1 everytime you ratify.
Form ADT 1 has to be filed for appointment.
Though, Eligibility Certificate has to be given by the Auditor.
While drafting Notice of AGM, it is recommended to give Explanatory Statement for ratification of Auditors, though not mandatory as it is Ordinary Resolution and not special Resolution.
To know more, contact CS Neha Seth at 9871903449 or email us at csnehaseth@gmail.com
E.g, if your company was registered on 21st July 2014, then, your Financial year ends on following 31st March i.e. 31st March 2015, so first AGM should be held on 31st Dec 2015 (within 9 months from the end of first FY).
So, now the company must appoint its First Auditors for a term of 6 years on its First AGM i.e on 31st Dec 2015.
E.g if your company has its Second AGM for FY 2014-15, then, due date of AGM for this company would be 30th Sep 2015 (within 6 months from ending of FY). So, this company is not required to appoint auditors but they need to ratify the appointment of Auditors in this AGM by passing Ordinary Resolution. So, for ensuing 6th AGM, the company has to place the matter for Ratification for Appointment of Auditors. THis is basically confirmation of auditors appointment.
There is no requirement to file Form ADT 1 everytime you ratify.
Form ADT 1 has to be filed for appointment.
Though, Eligibility Certificate has to be given by the Auditor.
While drafting Notice of AGM, it is recommended to give Explanatory Statement for ratification of Auditors, though not mandatory as it is Ordinary Resolution and not special Resolution.
To know more, contact CS Neha Seth at 9871903449 or email us at csnehaseth@gmail.com
In second case e.g. if your company has its second AGM for FY 2014-15 and company wants to remove existing auditor and appoint new auditor for FY 2015-16, what will be procedure as per new Co Act,2013
ReplyDeleteIn second case e.g. if your company has its second AGM for FY 2014-15 and company wants to remove existing auditor and appoint new auditor for FY 2015-16, what will be procedure as per new Co Act,2013
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