ACCORDING TO SECTION 139 A COMPANY HAS TO APPOINT INDIVIDUAL AUDITOR FOR FIVE YEARS; NOW IN CASE OF ONE OF MY CLIENT PVT CO. THEY HAVE FILED ADT-1 IN P.Y. 14-15 FOR ONE YEAR APPOINTMENT AND AGAIN IN 15-16 THEY HAVE REAPPOINTED THE SAME AUDITOR IN AGM FOR ONE YEAR AND FILED FORM ADT-1 IN SEPT 2015; SO MY QUESTION IS DOES IT ALLOW? IS THIS NON-COMPLIANCE OF THE ACT IF AN AUDITOR IS APPOINTED FOR SINGLE YEAR AND FORM IS FILED IN EACH OF THE FIVE YEARS? PLEASE HELP ME IN THIS MATTER
30 October 2015
139 does NOT make it compulsory to appoint the auditor for 5 years. The choice to appoint the auditor for 1 year OR 5 years is with the Company.
Now in your query, you say that auditor is REAPPOINTED in 15-16.... now for this ADT1 is required to be filled