Question

How is the vacancy caused by an auditor's resignation filled?

• A. By the managing director.
• B. By the board of directors.
• C. At the general meeting.
• D. Any of the above.

Answer 1

The correct option is B By the board of directors.

Section 139 (8) of the Companies Act 2013 deals with the appointment of an auditor in casual vacancy. A vacancy in the office of the auditor of a company before the term of expiry is called casual vacancy which includes vacancy due to resignation.

Wherever the casual vacancy arises, it has to be filled by the board within 30 days and this appointment shall be approved in a general meeting convened within 3 months from the date of the recommendation of the board.