Question

Board of directors appoint Arun as the auditor of the Company but he was not ratified by the shareholders in AGM. What will be true?

• A. Board of directors will appoint another person as auditor
• B. Arun will remain the auditor of the Company
• C. Shareholders view doesnt affect Aruns appointment
• D. None of the above

Answer 1

The correct option is A Board of directors will appoint another person as auditor

Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed provided that the company shall place the matter relating to such appointment for ratification by members at every annual general meeting and if not ratified the Board shall appoint another auditor.