Appointment of New Auditor in place of existing Auditor

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  1. R P Jain

    R P Jain New Member

    As per section 139 of The Companies Act, 2013 Auditor has been appointed for FY 2014-15 at the AGM of the Pvt. Ltd. Company held on 27/09/2014 & Form No. ADT – 1 was also filled by company with Register of Companies with in prescribed time. However now in the month of February 2015 auditor has received letter from another Chartered Accountant informing that in place of him that another Chartered Accountant has been appointed by the Company and request for issuing No Objection Certificate. However Existing Auditor did not received any communication from the company regarding this new appointment, in such scenario is this new appointment is valid as per The Companies Act, 2013?
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yes the new appointment is valid as per the companies act 2013.
    But before the appointment of new auditor company should obtain prior approval of central government in this behalf as per sec 224(7).Except...

    such approval is not required for removal of first auditor appointed by board of directors..in such a case it is sufficient to pass ordinary resolution for removal.

    So the conclusion is company is not bounded to sent any notice to the existing auditor before the appointment of new auditor.
     
    Last edited: Feb 10, 2015
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