Section 315 of the Companies Act, 2013
Section 315 of the Companies Act, 2013 pertains to the Appointment of Auditors in Government Companies.
Text of Section 315:
Section 315: Appointment of Auditors in Government Companies
In the case of a Government company, the Comptroller and Auditor-General of India (CAG) shall appoint the auditors of the company and fix their remuneration.
The appointment and remuneration of such auditors shall be subject to provisions of the Act, and the company shall pay to the auditors such remuneration as may be determined by the CAG.
Explanation:
A Government company is a company where at least 51% of the paid-up share capital is held by the Government (Central or State).
Unlike other companies, where auditors are appointed by members or the Board, in Government companies the Comptroller and Auditor-General of India (CAG) has the power to appoint auditors.
The remuneration for auditors is also fixed by the CAG.
This section ensures proper government oversight of audit processes in companies controlled by the government.
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