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Auditors reappointment in NETWORK companies

Ravi Kiran Vustela (Knowledge Seeker) (1353 Points)

21 January 2017

Mr.X completed his 5 years term in a company.. Now X is *not eligible* to be appointed as auditor of the *same company for Next 5 years*.... However *can MrX be appointed as Auditor of its subsidiary or holding or associate* immediately after vacating the first company

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2 Replies

Chandra Bhushan (Company Secretary) (511 Points)
Replied 23 January 2017

Yes, as per Section 139 of the Companies Act, 2013 Mr. X may be appointed as the Auditor in the Subsidary, holding or associate company.

Jatin Bajaj (CS) (2928 Points)
Replied 23 January 2017

Yes, as per section 139(2), Read with Rule 5 of companies Auditor rule, any Company either public company or private company to which rotation of auditor applies shall not reappoint the auditor after the expiry of 5 years in the same company.

the law has stated that such indivisual shall not appointed in the same company. so such an auditor can be appointed in the subsidiary or associate company