Qualifications of an Auditor

directors will consider the appointment of a person as an Auditor in casual vacancy and the necessary consent and certificate under Section 224(lB) will be obtained from him. The same will be referred to the general meeting for passing the necessary resolution. On the appointed day, the general meeting will be held and the necessary resolution passed. After appointing the Auditor, he has to be intimated within 7 days of appointment and he, in turn, has to file Form No. 23B with the Registrar within 30 days of receipt of intimation from the company.
3. Where the shares of the company are listed, the stock exchange should also
be advised of the appointment as per the listing agreement.
Q; 23. State the legal position where no Auditors were appointed at the annual general meeting of a public limited company.

.9l.ns. Section 224 (3) of the Companies Act, 1956 provides that if no Auditors are appointed or re-appointed at the annual general meeting, the Central Government may appoint a person to fill in the vacancy. For this purpose, the company is charged with the responsibility of communicating to the Central Government that no appointment or re-appointment was made in the annual general meeting within 7 days from the date of such meeting.
Where appointment by the Central Government becomes necessary, an application is required to be made to the Regional Director. There is no prescribed form of application but the circumstances in which the company failed to appoint an Auditor in its annual general meeting should be detailed.

Q; 24. State the qualifications that a person should possess to be qualified for appointment as an Auditor of a public limited company.

.9l.ns .

Qualifications of an Auditor
Section 226 of the Companies Act, 1956 prescribes the qualification and disqualifications of company Auditors. According to Section 226 (1), a person shall not be qualified as Auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949. It is further provided that a firm whereof all the partners. practising in India are qualified for appointment as Auditor may be appointed by its firm name to be the auditor of a company. In this regard, it may be noted that under the Chartered Accountants Act, 1949, only a chartered accountant holding a certificate of practice can be engaged in the public practice of accountancy. Thus, it is only a practising chartered accountant that can be appointed as an Auditor of a company.
Apart from practising chartered accountants, Section 226 (2) allows a holder of a certificate in an erstwhile Part B State which entitled him to act as an Auditor of companies in the territories of that State, to be appointed as an Auditor of companies registered anywhere in India.
Thus, an Auditor of a company must either be : 1. A practising Chartered Accountant, or