Dear Expert,An auditor of a company, appointed to appoint the books of accounts for the period 2016…
Dear Expert,
An auditor of a company, appointed to appoint the books of accounts for the period 2016-17, resigns on the last day of March 2017. Does this create casual vacancy in the office of the auditor in the company?
And if so, by when should we fill this casual vacancy? In other words, by when should we appoint another auditor in our case?
As your auditor resigned the company, it is casual vacancy.
Such casual vacancy has to be filled by the BOD subject to the retification of members in EGM.
The followings are the procedure to fill the casual vacancy.
- Board of directors has to fill the casual vacancy with 30 days of resiganation of auditor.
- New auditor should be approved by members in EGM within 90 days of such appoinment. So board should called the EGM.
- Ordinary resolution has to be passed as a special business in EGM.
In your case, auditor has to be appointed upto 30 June. And board should call the EGM within 90 days of his appointment to retify such appoinment.
If the EGM retify the appointent of auditor, he shall hold office till next AGM.
