Statutory auditors of Government‑owned or controlled corporations - Appointment/Re‑appointment by Company Law Board - Companies Law - Circular : No. 15/18/75‑IGC,

Circular : No. 15/18/75 ‑ IGC, dated 28 ‑ 6 ‑ 1975. Subject:- Statutory auditors of Government ‑ owned or controlled corporations - Appointment/Re ‑ appointment by Company Law Board The statutory auditors of companies coming within the ambit of section 619B (which came into force on 1‑2‑1975) are required to be appointed/reappointed in terms of section 619 by the Company Law Board (to whom the powers of the Central Government on this behalf have been delegated) on the advice of the Comptroller and Auditor General of India. The onus of complying with the aforesaid provisions of the Act lies with the concerned companies. All the same it would be necessary on the part of the auditors appointed/ reappointed, under section 224 to ensure, before accepting the appointment/ reappointment, that the company concerned is in fact outside the ambit of section 619B. It is needless to mention that in the event of the company being already hit by section 619B any appointment/reappointment of auditors by the company concerned under section 224 would be ab initio void.