Companies Act, 2013: Provisions regarding Company

Transcript:Companies Act, 2013: Provisions regarding Company:
Companies Act, 2013: Provisions regarding Company Auditor- Appointment of Auditor (Sec. 139) Removal of the Auditor (Sec. 140) Qualification and disqualification of Auditor (Sec. 141) Remuneration of Auditor (Sec. 142) Power and Duties of Auditor (Sec. 143) Qualification and disqualification of Auditor [Sec. 141 (3): Companies Act, 2013]- Qualification- Individual: A person is qualified for the appointment as an auditor of the company only if he is a Chartered Accountant within the meaning of the Chartered Accountants Act 1949. Firm including LLP(Partnership firm of CA in practice): A firm shall be eligible for appointment as an auditor of the company only if majority of its partners practicing in India are qualified for appointment (i.e. CA) Disqualification of Auditor [Sec. 141 (3): Companies Act, 2013]- A Body Corporate excluding LLP. An officer or employee of the company A partner or employee of an officer or employee of the company A person who or his relative or his partner is holding any security in the company or subsidiary company or holding company or associate company or subsidiary of such holding company. A person who or his relative or partner is indebted to the company or subsidiary company or holding company or associate company or subsidiary of such holding company exceeding Rs. 5,00,000/- or who has given any guarantee in connection with indebtedness of any third person of the company…. for an amount exceeding Rs. 1,00,000/-. A person or a firm who directly or indirectly has business relationship of such company or subsidiary company or holding company or associate company or subsidiary of such holding company. A person whose relative is a director or key managerial personnel. A person who is an auditor in more than 20 companies. A person who is engaged in consulting and specialised services. Convicted person. Appointment of Company Auditor (section 139):- Appointment of First Auditor section 139(6)- In case of newly formed company, first auditor shall appointed by the Board Of Directors (BOD) within 1 month/ 30 days of the date of registration of the company. The first auditor so appointed shall hold office until the conclusion of the first Annual General Meeting (AGM). In case of BOD could not appoint in this regard, the board shall inform members of the company who shall appoint first auditor within 90 days at an extra ordinary general meeting (EGM). Appointment of First Auditor in case of Government Company (section 139(7)-