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CS Executive · Company Law and Practice · Accounts and Auditors

At the annual general meeting of Kaveri Foods Ltd, no auditor was appointed or re-appointed because the item was inadvertently left out. What is the legal position under the Companies Act, 2013?

When no auditor is appointed or re-appointed at an annual general meeting, the existing auditor continues to be the company's auditor. The situation is not a casual vacancy, so the Board need not fill it, and the office does not remain vacant.

  1. AThe Board must appoint a new auditor within thirty days as a casual vacancy
  2. BThe office of auditor remains vacant until the next general meeting
  3. CThe existing auditor continues to be the auditor of the companyCorrect
  4. DThe Registrar of Companies appoints an auditor for that year

Explanation

Where at any annual general meeting no auditor is appointed or re-appointed, the existing auditor continues as auditor. This is not treated as a casual vacancy, so the Board's thirty-day power does not arise. The office does not fall vacant.

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