At the Annual General Meeting of the Company, the entire body of shareholders passed a resolution r…
At the Annual General Meeting of the Company, the entire body of shareholders passed a resolution restricting some of the powers of the Statutory Auditors. Whether powers of the Statutory Auditors can be restricted?
No, shareholders can't restrict the powers of statutory auditors.
The powers of auditors are bestowed by section 143 of the Companies Act 2013.
And as a rule no one other than Parliament can amend an Act.
The main responsibility of the statutory auditor is to ascertain whether or not the financial statements prepared by the company are free from misstatements, and if they reflect the true image of the financial status of the company.
For this purpose, the auditor must be independent. So, section 143 gave him powers.
His powers can not be restricted by the company or the shareholders, simply because many people (other than the company) have direct relationships with the company. You should note that the auditor is reporting to these people (including the company) and not just the company.
