What are the disqualifications of an Auditor

2. Where he has given the company notice in writing of his unwi:Iingness to be
reappointed;
3. Where a resolution has been passed at that meeting appointing somebody
instead of him or providing expressly that he shall not be reappointed; and
4. Where a notice has been given of an intended resolution to appoint some person or persons in place of retiring Auditor and by reason of death, incapacity or disqualification of that person or of all other persons, the resolution cannot be proceeded with.
Appointment by Central Government
Section 224 (3) provides that where at an annual general meeting no Auditors are appointed or re-appointed, the Central Government may appoint a person to fill the vacancy. For this purpose, the company is charged with the responsibility of intimating the above fact to Central Government 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.

Casual Vacancy
If there arises a casual vacancy by the death, insanity or insolvency, etc., of the Auditor, Section 224 (6) empowers the Board of Directors to fill the same. Till the vacancy so caused is filled, the remaining Auditor or Auditors may act. However, this power of the Board is subject to one limitation and that is where the casual vacancy is caused by the resignation of an Auditor. In such a case, the vacancy can only be filled by the company in general meeting.
The auditor appointed in a casual vacancy shall hold office until conclusion of the
next annual general meeting.
Q 26. How is the first Auditor of a company appointed? What are the disqualifications of an Auditor?

.9Lns. Please see answers to Q. 18(a) and 18(b) respectively.
Q 27. State the provisions of the Companies Act. 1956 in respect of filling of casual
vacancy in the office of Auditor.
.9Lns. Please see relevant portion of the answer to Q. 25.
Q 28. State the provisions of the Companies Act regarding remuneration of Auditors.

.9Lns .

Remuneration of Auditors
Regarding remuneration of Auditors, Section 224(8) provides as follows:
. 1. In the case of an Auditor appointed by the Board of directors or the Central Government, his remuneration may be fixed by the Board or the Central Government, as the case may be.