Central Government’s power to appoint auditors under sub‑section (3). - Companies Law - No. 35/13/74‑CL-III,

Letter : No. 35/13/74 ‑ CL-III, dated 21-11-1974. Subject:- Central Government s power to appoint auditors under sub ‑ section (3). It is only where an auditor is not appointed at an annual general meeting that the Central Government can exercise the powers under section 224(3). According to the provisions of section 224(1), the auditors are appointed for the period beginning from the conclusion of the annual general meeting (in which they are appointed) till the conclusion of the next annual general meeting. The appointment of auditors is made in terms of this period and for any financial year. The auditors shall audit all the accounts of the company which are to be placed in the next annual general meeting. Thus, when the annual general meeting could not be held on 29th June, 1974 the date for which it had been convened or on the adjourned date, the auditors who had audited the company s accounts for the year ended 31st December, 1973, will continue to be the auditors till the conclusion of the next annual general meeting, whenever it may be possible to hold it, and shall be competent to audit all the subsequent accounts which may be placed at such next annual general meeting.