Clarification on Auditor Appointment: "Other than Retiring" Phrases Not Mandatory in Notices u/ss 224(2)(c) & 225(1.

The circular addresses the interpretation of the phrase "other than retiring" in the context of appointing new auditors under sections 224(2)(c) and 225(1) of the Companies Law. It clarifies that while proposing a new auditor, it is not mandatory to include the phrases "other than a retiring auditor" or "instead of him" in the special notice or resolution at the annual general meeting. The reappointment of a retiring auditor is not automatic, and the absence of these phrases does not affect the validity of appointing a new auditor, as these words are merely suggestive and not legally required.