How is the auditor‟s remuneration fixed and in what circumstances may the registrar appoint an auditor for a company?

Under Section 159 (7) (a) of the Companies Act the auditors remuneration may be fixed:
By the registrar if appointed by him.
 By directors if appointed by them
 By the company in general meeting
 In such manner as the company in general meeting may determine.
Under Section 159 (3) of the Companies Act where at an annual general meeting no auditors are appointed or are deemed to be reappointed, a vacancy arises.

The company must notify the registrar within 7 days thereof and the registrar may appoint an auditor for the company. Failure to notify the registrar of the failure renders the company and every officer in default liable to a default fine.

Leave a Reply

Your email address will not be published. Required fields are marked *