Casual Vacancy of Auditor
The Statutory Auditors of our company have resigned. What is the procedure to appoint a new Auditor?
| Type of Company | C&AG | Board | Members |
| Government Company | Within 30 days from the date of the vacancy | In case of failure of C&AG to appoint an auditor then the such appointment Within the next 30 days | Not Applicable |
| Other than the Government Company | Not Applicable | Within 30 days from the date of the vacancy | In case of failure of the Board to appoint an auditor, then the such appointment. Within 3 months of the recommendation of the Board |
- There is no need for members’ approval if a casual vacancy arises due to reasons other than resignation. The reason may be death, etc. but does not include removal.
- The Auditor who has resigned, is required to file an e-form ADT-3 within a period of 30 days from the date of resignation.
- E-form ADT-1, towards the appointment, is required to be filed within 15 days from the date of appointment, i.e. Board meeting held to fill casual vacancy. SRN of the e-form ADT-3 filed by the previous Auditor is to be mentioned in ADT-1 (appointment form of new Auditor). So, ADT-3 Shall be filed before ADT-1.
What would be the tenure of an auditor appointed in a casual vacancy?
- Auditor appointed in casual vacancy shall hold the office till the conclusion of the next Annual General Meeting.
Whether the form filing is required for every type of appointment of an auditor?
- Yes, at every type of appointment i.e. first auditor, casual vacancy, or appointment at AGM, the Company shall file ADT-1 for such appointment.