Section 142: Remuneration of auditors
This section is for determining how the remuneration of a company's auditor is fixed and what it includes.
The section, clause by clause
What the section says
In plain terms
(1)The remuneration of the auditor of a company shall be fixed in its general meeting or in such manner as may be determined therein:
The remuneration of a company's auditor is fixed at a general meeting or in a manner determined by the meeting, although the Board can fix the remuneration of the first auditor it appoints.
provisoProvided that the Board may fix remuneration of the first auditor appointed by it.
(2)The remuneration under sub-section (1) shall, in addition to the fee payable to an auditor, include the expenses, if any, incurred by the auditor in connection with the audit of the company and any facility extended to him but does not include any remuneration paid to him for any other service rendered by him at the request of the company.
The auditor's remuneration includes the audit fee, expenses incurred during the audit, and any facilities provided, but does not include payment for other services provided to the company.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 1 of 2018, s. 42, for clause (i) (w.e.f. 9-2-2018).
Referred to by
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.