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TMI Blog1954 (5) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... dent had contravened the provisions of clauses ( h ) and ( i ) of the schedule to the Chartered Accountants Act, 1949. The Secretary of the Council, on receiving the complaint, asked the respondent to put in his written statement. Having obtained the written statement from him, he placed the matter before the Council in its meeting held on September 16, 1950. The Council decided to have an enquiry made by the Disciplinary Committee, as contemplated by section 21 of the Chartered Accountants Act, 1949. A meeting of the Disciplinary Committee was held on November 21, 1952. The parties were heard. The report of the Committee was that the first charge disclosed in the complaint was not proved. The second charge which involved the violation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r notice of his nomination as auditor had been given by the company to the retiring auditor as well as to the members. The company informed the respondent by their letter, dated October 26, 1951, that no auditor had been appointed at the previous annual general meeting. He was, however, assured that in the meeting of the directors of the company held on September 22, 1951, a resolution was passed appointing the respondent auditor of the company and that notice of the appointment would be sent to Mr. Majumdar. On this assurance, he accepted the appointment and audited the accounts. His defence before the Disciplinary Committee was that he accepted the appointment under the impression that it was a case of casual vacancy, and that the appoint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the directors may fill any casual vacancy in the office of auditor, but while any such vacancy continues, the surviving or continuing auditor (if any) may act. It is clear from the language of this clause that a casual vacancy is a vacancy of a temporary nature which may occur during the currency of the year after an appointment is made by the company at its annual general meeting. The appointment of the auditor enures only for a year. A casual vacancy, therefore, will be a temporary vacancy for a part of the year. It is, therefore, provided that if there is any casual vacancy, this may be filled by the directors, but the surviving or continuing auditor also has the authority to act. A casual vacancy, therefore, is not a vacancy cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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