Section 145: Auditor to sign audit reports, etc
This section requires the company's auditor to sign certain documents and disclose any negative findings to the company and its members.
The section, clause by clause
What the section says
In plain terms
The person appointed as an auditor of the company shall sign the auditor’s report or sign or certify any other document of the company in accordance with the provisions of sub-section (2) of section 141, and the qualifications, observations or comments on financial transactions or matters, which have any adverse effect on the functioning of the company mentioned in the auditor’s report shall be read before the company in general meeting and shall be open to inspection by any member of 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. The words “with imprisonment for a term which may extend to one year or” omitted by Act 29 of 2020, s. 31 (w.e.f. 21-12- 2020).
- 2. Subs. by s. 31, ibid., for “one lakh rupees, or with both” (w.e.f. 21-12-2020).
- 3. Ins. by Act 1 of 2018, s. 44 (w.e.f. 9-2-2018).
- 4. Subs. by Act 1 of 2018, s. 44, for “and with fine which shall not be less than one lakh rupees but which may extend to twenty- five lakh rupees” (w.e.f. 9-2-2018).
This section refers to
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.