Board Resolution Format for Appointment of First Auditor

In accordance with the provisions of sub-section (6) of the Companies Act, 2013, the Board of Directors of a company is required to appoint the first auditor of the company within 30 days from the date of registration of the company.

If the Board fails to appoint such an auditor, it has to inform the members (shareholders) of the company, who are required to appoint such an auditor within 90 days at an extraordinary general meeting (EGM).

Such first auditor shall hold office till the conclusion of the first annual general meeting.

Following is a template of the extract of minutes of the meeting of the board of directors on the item of the agenda for the appointment of first auditors.

SAMPLE

#. Appointment of Statutory Auditors

The Board was informed that as per the provisions of section 139(6) of the Companies Act, 2013 it was required to appoint the statutory auditors for the company within 30 days from the date of registration of the company.

The Board was further apprised that the management has approached M/s. .................., Chartered Accountants, a reputed firm of experienced professionals, having their main office at (location). M/s. .................., Chartered Accountants have shown their interest and have given consent to act as the auditors of the company.

The Board considered the matter, and upon motion duly made and seconded, it was: 

“RESOLVED THAT pursuant to the provisions of Section 139(6) of the Companies Act, 2013 ('the Act'), M/s.................., Chartered Accountants (Firm Regn. No. ................), who have consented for appointment and have issued a certificate in terms of section 139(1) of the Act, be and is hereby appointed as the first auditors of the company to hold office until the conclusion of the first annual general meeting of the company at the following remuneration terms:

 1) Audit fees: Rs. ................/- (excluding GST)

 2) Out of Pocket expenses: At actuals.”