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    Term of Auditor

    Posted By : Sachin / Published on : 07-Dec-2022 06:07 AM / View : 138 / Comment : 1

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    Dear All,

    Kindly explain if the auditor of the company has resigned and if we have also appointed a new auditor in EGM and also has filed ADT-1, then

    1. in next AGM, do we require to file ADT-1 again after ratification??
    2. From where the tenure of 5 years shall start: from the year of EGM or from the year of AGM??
    Read more on : auditor term

    • As per the Companies Act, 2013, the term of an auditor is as follows:

      1. Appointment: An auditor is appointed by the shareholders of a company at the annual general meeting (AGM) of the company for a term of five consecutive years.

      2. Re-appointment: An auditor can be re-appointed for a further term of five consecutive years at the end of the first term by passing a resolution at the AGM, subject to certain conditions.

      3. Rotation: After two consecutive terms of five years each, the auditor must be rotated and a new auditor must be appointed for a term of five years. This rotation requirement applies to all companies, except one-person companies and small companies.

      4. Removal: An auditor can be removed before the expiry of his/her term by passing a special resolution at a general meeting of the company, subject to certain conditions.

      5. Resignation: An auditor can resign from his/her post by giving notice in writing to the company and the Registrar of Companies (ROC).

      6. Casual vacancy: If an auditor vacates his/her office before the expiry of his/her term, the company must appoint a new auditor to fill the vacancy within 30 days. The new auditor will hold office until the conclusion of the next AGM.

      It is important to note that the above-mentioned provisions are subject to any rules or regulations that may be prescribed by the government or any other regulatory authority from time to time.

      29-03-2023 / 06:24:15 AM
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