Search Results For: Reappointment of Auditor

Can Retiring Auditor Be Reappointed?

QUERY: A member has sent a special notice under section 190(I) of the Companies Act, 1956 well within clear 14 days proposing a name of Auditor to be appointed for the current year in place of retiring auditor with a draft resolution. The company has not taken any action on the notice and filed it intimating that no action can be taken on the notice and referred to section 188 of the Act not been complied with.

Whether retiring auditor can accept the appointment as auditor of the company and that the retiring auditor was well aware of the stand of the company not taking any action on the special notice served by a member of the company.
ANSWER: Click here to read the full answer of the expert

First of all, a notice sent by a member under section. 190 of the Companies Act was not proper. A special notice under section 225 of the Companies Act ought to have been served for a resolution that an ensuing general meeting a person other than retiring auditor should be appointed.

Posted in Company Law