05 January 2015
FACTS : 1) Mr.X was appointed as auditor of ABC ltd. in the AGM of 2014 for a term of 5 years i.e. upto conclusion of AGM for year 2019. 2) BUT in 2016 shareholders did not ratify his appointment. 3) Mr.Y was appointed in his place. QUERY : 1)Will this amount to completion of a term of Mr.X? 2)For how many further year is he eligible to be appointed in year 2019 ?
06 January 2015
1. No. As appointment was for 5 Year term
2. If provisions relating to mandatory rotation was applicable, (cooling off period of 5 year shall be maintained) after that not more than one term of 5 consecutive years. other wise 5 year term subject to ratification
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