What is Section 1of the Companies Act? Removal, resignation of auditor and giving of special notice. The auditor appointed under section 1may be removed from his office before the expiry of his term only by a special resolution of the company , after obtaining the previous approval of the Central Government in that behalf in the prescribed manner: Provided that before taking any action under this sub-section , the auditor concerned shall be given a reasonable opportunity of being heard. REMOVAL, RESIGNATION OF AUDITOR AND GIVING OF SPECIAL NOTICE.
Since the long relationship has built with auditors for years or, as the case may be, years, the strict formalities should be followed to remove auditors before expiry of term.
See full list on aubsp. Accordingly, the resigned auditor of company shall file such statement in Form No. Government Companies or Company controlled by Central Government or State Government. If the retiring auditor has not completed a consecutive tenure of years or, as the case may be, years, special notice shall be required for a resolution at an Annual General Meeting (AGM): i) appointing as auditor a person other than a retiring auditor, or ii)providing expressly that a retiring auditor shall not be re-appointed.
On receipt of notice of such a resolution, the company shall forthwith send a copy thereof to the retiring auditor. If the Tribunal is satisfied on an application either of the company or of any other aggrieved person that the rights conferred by this sub- section are being abused by the auditor, then, the copy of the representation may not be sent and the representation need not be read out at the meeting. Provided further that in case of a Specified IFSC public company, where, within a period of sixty days from the date of submission of the application to the Central Government under this sub-section, no decision is communicated by the Central Government to the company, it would be deemed that the Central Government has approved the application and the company shall appoint new auditor at a general meeting convened within three months from the date of expiry of sixty days period.
Provided further that in case of a Specified IFSC private company, where, within a period of sixty days from the date of submission of the application to the Central Government under this sub-section, no decision is communicated by the Central Government to the company, it would be deemed that the Central Government has approved the application and the company shall appoint new auditor at a general meeting convened within three months from the date of expiry of sixty days period.
The instances which require a special notice under the provisions of the Act are as follows: a) Under sub- section (4) of section 1for appointing a person other than a retiring auditor or providing expressly that the retiring auditor shall not be reappointed. Special notice shall be signed by the members either individually or collectively, as necessary. Although a common thread runs through the procedure to be adopted for this purpose under both the enactments-namely the requirement of a special notice from the members, there are certain.
However, before initiating the procedure or taking action under section 1for removal, the auditor concerned shall be given a reasonable opportunity of being heard. However, in the day to day business, there are many instances, where companies seek to remove the auditors and they do it directly without giving any opportunity of being heard. Explore them by section wise, view them or download them.
Further, offences under the Act have been classified as Compoundable and Non-compoundable offence. Where, by any provision contained in this Act or in the of a , special notice is required of any resolution, notice of the intention to move such resolution shall be given to the company by such number of holding not less than one per cent of or holding on which such aggregate sum not exceeding five … Continue reading Section 115. Resolutions requiring special notice.
Further, incase of listed companies in addition to the valuation report issued by the registered valuer, a merchant banker registered with SEBI shall issue a fairness opinion on the derived swap ratio. The disqualification for a person to be appointed as a director are: Unsoundness of. However if we try to analyze the section 621A, we can draw one clear interpretation i. As per the recor the original petitioners disputed these.
Exception to section 1— companies having real and continuous link with economic activity in State. Section 1(1) shall not apply in relation to a company in respect of which there is in force a certificate under this section. COMPANIES AND ALLIED MATTERS ACT ARRANGEMENT OF SECTIONS PART A Companies PART I Corporate Affairs Commission SECTION 1.
Establishment of the Corporate Affairs Commission. Membership of the Commission. Remuneration and allowance. Proceedings of the Commission. LAWS OF TRINIDAD AND TOBAGO L. Section 141- Eligibility, qualifications and disqualifications of auditors.
If the Company files an application under Section 248(2) in violation of the conditions specified in Section 249(1), it shall be punishable with line which may extend to one lakh rupees. In the case of Kirloskar Electricals Co. Provided also that the company shall inform the auditor concerned of his or its. For the purposes of this Chapter, “appointment” includes reappointment. Attendance slip, proxy form and route map of the venue of the Meeting are annexed hereto.
Registrar within fifteen days.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.