Companies Act Section 142 — Remuneration of auditors
CHAPTER X AUDIT AND AUDITORS
Commercial / Corporate
Summary
Sub-section (1) states that the remuneration of a company's auditor is to be fixed at the company's general meeting, or in the manner decided at that meeting. However, there is an exception: the Board of directors may fix the remuneration of the first auditor it appoints.
Sub-section (2) clarifies what the remuneration mentioned in sub-section (1) covers. In addition to the fee paid to the auditor, it includes any expenses the auditor incurs in connection with the audit and any facility extended to the auditor. It does not include any payment made to the auditor for other services that the auditor performs at the company's request.
Official Text
(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 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.