A board meeting is a formal gathering of a Board of Directors. Most of the organizations, being public or private, profit or non-profit, are ultimately governed by a body commonly known as Board of Directors. The members of this body cyclically meet to discuss strategic matters. Companies registered in India are required to make Appointment of an Auditor and have their books of accounts audited each year
Hence, in the first annual meeting after the Incorporation of the Company, an auditor must be appointed by the Board of Directors. Thus, the appointment of an auditor can also be made for a period of 1 year which is renewable at each annual general meeting.
The auditor typically holds term till the conclusion of 6th AGM or 5 years. A written consent along with a Certificate must be obtained from the CA for the appointment of the auditor. This states that he/she is eligible for appointment as Auditor of a Company. And that the proposed appointment is in accordance with the Companies Act.
Thus, review your Board Meeting Minutes immediately after the meeting. When your board meeting minutes are complete and finished, make sure they are distributed to board members as soon as possible. Once the minutes are approved by a vote of the members during the board meeting, they become part of the official record of the organization. It’s important that a copy of all minutes are kept in one place.
An auditor is responsible for judging the validity and reliability of a company by evaluating evidence and financial reports with established standards. There are four different types of auditors:
1. Independent or External Auditor
– Profesional Audit services providors.
2. Internal Auditors
– Company’s own in-house expert auditors to maintain internal control and audit the company’s internal activities.
3. Government Auditors
– Auditors that are working with various government agencies;
where why audit internal agency audit and/or audit the
corporations by court order or government law.
4. Forensic Auditors
– They are hired to play Sherlock. Auditors that specialize in
crimes and are used by law enforcement organizations.
The first auditors are appointed by the Board of Directors. Thus, to remove the first auditors, an ordinary resolution is to be passed at the shareholder’s meeting. If another person is proposed to be appointed in his/her place, at least 14 days’ notice is required.
A retiring auditor can be re-appointed at an Annual General Meeting if:
1. The auditor is not disqualified for re-appointment
2. The auditor has not given the company a notice in writing of his unwillingness to be re-appointed
3. A special resolution has not been passed at that meeting appointing some other auditor. Or providing expressly that he shall not be re-appointed