APPOINTMENT OF AUDITORS

After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.

Before the appointment of the Auditor, a written consent along with Certificate must be obtained from the CA, that he/she is eligible for appointment as Auditor of a company and that the proposed appointment is in accordance with the Companies Act.

The appointment of First Auditor of the Company must be completed by the Board of Directors within 30 days of incorporation. In case the Board of Directors fail to appoint an Auditor, the members of the company must be informed. The members will then be required to appoint an Auditor within 90 days at an Extra Ordinary General Meeting. An Auditor so appointed will hold office until the conclusion of 1st Annual General Meeting.

PROCEDURE REQUIRED FOR APPOINTMENT OF AUDITORS
1. Obtain written consent and a certificate from the proposed auditor to the effect of eligibility under section 139 & 141 of the Companies Act, 2013
2. Board or the audit committee as the case may be after taking into consideration the qualifications and experience and eligibility of the individual or the firm proposed would recommend the name of the auditors
3. Issue not less than 7 days notice and agenda of the meeting and call a board meeting within 30 days from the date of registration.
4. Pass a resolution to appoint the auditor.
5. Inform the auditor so appointed and file a notice of such appointment with the registrar in form no. ADT-1 within 15 days of the BOD Meeting

DOCUMENTS REQUIRED
1. Certified true copy of the board resolution for appointment of first auditor
2. Intimation letter given by the company to the auditor