Remuneration of auditors
📚 Law Minded summary
The auditor's fee is fixed in general meeting, or in the manner the members decide there — not by the management the auditor is checking.
The first auditor's fee can be fixed by the Board. The fee includes out-of-pocket expenses, but not payment for other services rendered at the company's request.
(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: Provided 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 paya ble 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.