Appointment of auditor

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Bhawna pamnani (Querist)

23 November 2015 a company is already appointed one auditor firm for one year but now the company wants to appoint one more auditor firm for next five years. Can a company appoint one more auditor firm?

Kumar

Kumar (Expert)

23 November 2015 Yes depending upon the number of years served by the existing auditor. If the existing auditor has already served 10 years, then he can be appointed for one year and the new joint auditor for five years

Bhawna pamnani

Bhawna pamnani (Querist)

24 November 2015 THE EXISTING AUDITOR WAS APPOINTED FOR ONE YEAR 2013-2014 BUT NOW THE COMPANY WANTS TO APPOINT ANOTHER AUDITOR DUE TO DISPUTE BETWEEN THE OLD AUDITOR AND THE DIRECTORS OF THE COMPANY. AND THE OLD AUDITOR IS NOT RESIGNING. nNOW WHAT SHOULD COMPANY DO?

Kumar

Kumar (Expert)

24 November 2015 If the existing auditor was appointed in the AGM held for adoption of 2013-14 accounts upto the conclusion of next AGM, he can be removed before conclusion of the next AGM i.e. for FY 2014-15 only with the approval of Central Government.

Alternatively the Company can appoint a new auditor for FY 2015-16 and such new auditor has to seek from the old auditor whether he has any professional objection in him accepting the assignment. This is possible because you have appointed the existing auditor only for 1 year, companies act 2013 requires an auditor to be appointed for 5 years and removal before completion of 5 years requires central government approval

Bhawna pamnani

Bhawna pamnani (Querist)

24 November 2015 I will really appreciate if you could tell me the Section under which this comes

Kumar

Kumar (Expert)

04 December 2015 Section 140(1) for removal before expiry of term and 139(1) deals with the appointment term

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