3.17     Query

Auditor’s Appointment under Section 224 of the

Companies Act, 1956.

(1)          Auditor is appointed for a public limited Company under Section 224 of Companies Act, 1956 to hold office from the conclusion of that meeting until the conclusion of the next Annual General Meeting.

(2)          Under Section 166, the date of Annual General Meeting is fixed.

(3)          On Section 256 there is a case law where it has been decided that the Director should be deemed to have vacated after the date of Annual General Meeting when the said meeting ought to have been called.

(4)          Whether the Auditor’s appointment is liable to be ceased as per clause(3) although the audit could not be completed prior to the date.

                                                            Opinion                                                        July 21, 1969

The auditors of a company will retire only at the conclusion of the next Annual General Meeting which is actually held. They cannot be deemed to have retired on the date on which such meeting should have been held if no meeting was actually held. Similarly, if the meeting is adjourned , the auditor would have to retire only at the subsequent date when the adjourned meeting is actually held and concluded.

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