Section 146 of the Companies Act, 2013
Section 146 of the Companies Act, 2013 – Auditor to attend general meeting
Bare Act Language:
All notices of, and other communications relating to, any general meeting shall be forwarded to the auditor of the company, and the auditor shall, unless otherwise exempted by the company, attend either by himself or through his authorized representative, who shall also be qualified to be an auditor, any general meeting and shall have right to be heard at such meeting on any part of the business which concerns him as the auditor.
Plain English Summary:
Section 146 makes it mandatory to involve the auditor in the company’s general meetings, especially where audit-related matters may be discussed.
Key Points:
Notice to Auditor:
The auditor must be sent notice of all general meetings (Annual or Extraordinary).
This includes all related communications (like agenda, resolutions, etc.).
Right & Duty to Attend:
The auditor is required to attend the general meeting unless the company specifically exempts him.
The auditor may attend personally or send an authorized representative, who must also be a qualified auditor.
Right to Speak:
The auditor has a right to be heard in the meeting, specifically on matters that concern him (e.g., audit report, financial statements, etc.).
Purpose of Section 146:
To ensure transparency and enable shareholders to raise questions or seek clarifications from the auditor on the financial statements and audit report. It also helps the auditor clarify any points directly to the members.
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