23 July 2014
If first auditor is appointed by Board and he completes his tenure of one year, then whether he would be appointed for 4 yrs/ 5yrs , in first AGM as to comply section 139?
24 July 2014
Company shall at the first AGM appoint an individual or a firm as an Auditor who shall hold office from the conclusion of that AGM till the conclusion of its 6th AGM and thereafter till the conclusion of every 6th meeting. ◦Even if the auditor is appointed for 5 years, then also members of the Company should ratify such appointment at every AGM.
However note that following Classes of Company required appointment of auditor on rotation basis:
(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) & (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.
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