The Ministry of Corporate Affairs (MCA) has amended the Companies ( Audit and Auditors ) Rules, 2014 wherein Forms ADT-No. 1 and ADT-No. 2 were substituted.
Form ADT-No. 1 provides for notice to the Registrar by the company for the appointment of auditor. Form ADT-No. 2 deals with application for removal of the auditor(s) from his/their office before the expiry of the term.
As per Section 139(1) of the Companies Act, 2013 read with rule 3 of Companies (Audit and Auditors) Rules, 2014, every company shall at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting (AGM) and thereafter till the conclusion of every sixth meeting. The manner and procedure of selection of auditors by the members of the company at such meeting has been prescribed under the Rules.
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