To fix remuneration of auditor!!!

[Deepesh Nayak]

Good Noon friends,

In Annual General Meeting of a Private Company, the members re-appointed statutory auditor at such Remuneration as may be decided by the Board.  The date of AGM was 28.09.2013.

Now, the board of director proposed to be convened its next board meeting on 28th December, 2013 for fixing remuneration of Statutory Auditor.

Whether this practice of board and the company is correct and as per law??? According to me yes.

Kindly also suggest your comment and send me format of suitable board resolution for fixation of remuneration of auditor.

Regards,
Deepesh

[Jeewan]

you can fix remuneration generally remuneration resolution is pass at the Board Meeting where Accounts is going to approved that is next year but you can. 

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Thanks & Regard

Jeewan

[Deepesh Nayak]

Thanks Mr. Jeewan,

But, how the remuneration, for auditing of accounts of 2013-14, can be fixed before the date of appointment i.e. date of AGM 28.09.2013.

Further, in the next year the same shall also be not possible.

Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary
 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[Simranjeet Singh Rekhi]

Dear Mr.Deepesh

You said that date of BM in which remuneration is proposed to be fixed is 28th Dec, 2013 and date of AGM in which they are app by members is 28/09 so it is perfectly all right. remuneration is to be fixed after their appointment not before in ur case.

generally remuneration is fixed after accounts are audited in the next FY of auditor's appointmnet. but it can be done before also.

here is the draft of the resolution

The Chairman informed the members that in terms of the resolution passed by the shareholders in the AGM of the Company, the Board of Directors would be required to fix Auditors remuneration & other payments for the said financial period, he then proposed the payment of Rs.______ as Audit Fee & Service Tax as applicable and also the reimbursement of actual out of pocket expenses. After discussion, it was:

 

“RESOLVED THAT the payment of an audit fee of Rs.______ plus Service Tax as applicable and reimbursement of actual out of pocket expenses be and are hereby approved to the Statutory Auditors for the financial period ended March 31, 2014.”

Best Regards

CS Simranjeet Singh

[Deepesh Nayak]

Thanks you so much Simarnjeet Sir & Mr. Jeewan Sir.

Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary
 *Mob. 097134-80215*
*csdeepe...@gmail.com*