Auditor Registration in vadapalani - Filingpoint


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The Supreme Court has clarified that the board of a company is duty-bound to fill up any casual vacancy in the office of auditor as soon as it arises. In a recent case, the Supreme Court held that National Rayon Corporation's (NRC) failure to do so is liable to attract penalty under the Companies Act.

The resignation of Deloitte Haskins & Sells as auditor of Adani Ports has again thrown the group into fresh scrutiny over its financial management. The move is also likely to spook investors who have seen the conglomerate's stock price plunge after the revelation of US-based short seller Hindenburg Research's report.

According to Section 140(2) of the Companies Act, an auditor can resign by depositing a notice in writing with the Registrar of Companies. The notice should include a statement of the reasons for resignation and a declaration by the auditor that the statements contained in the notice are true and correct.

If a resigning auditor fails to file the said statement with the Registrar, he/she shall be liable to pay a penalty of Rs. 50,000 or an amount equal to his/her remuneration, whichever is higher. Further, if the auditor continues to fail to do so, he/she may be liable to be disqualified by the Registrar.

Retail investors should watch out for these developments and assess the impact of an auditor resignation on a company's share price. Generally, markets don't react if auditors quit due to routine reasons like a conflict of interest or health issues. However, they tend to react negatively if the reason is related to governance.

Contact Filingpoint Auditor Registration in Vadapalani +91 72999 72500

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