Automatic re-appointment of retiring auditor

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MANOJ (Querist)

14 February 2015 I had this doubt recently while reading the new Co.s Act. If no auditor is appointed in the place of the retiring auditor even at the adjourned AGM, the retiring auditor is automatically reappointed.
But there are exceptions to it. where a resolution to re-appoint the retiring auditor is put to vote and lost the automatic re-appointment doesn't take place.
THIS POINT SEEMS TO BE ABSENT IN THE NEW ACT. MAY I KNOW THE REASON?

c.bakshi

c.bakshi (Expert)

15 February 2015 As Per New Act, 2013 The Auditor or Auditor's firm is appointed for a term of 5 years or 10 years respectively subjected to ratification is done. That is why. Read the Rules along with ACT for better clarity

MANOJ

MANOJ (Querist)

17 February 2015 Dear C.Bakshi, You are right. but take a case.Say ABC firm is appointed for 5 years. At the 6th AGM, the firm retires. As per new act, it can be reappointed again for another five year term. If a resolution to reappoint the auditor is lost and no other auditor is appointed, the new act is silent and ABC is automatically reappointed. Is this not an irregularity.

c.bakshi

c.bakshi (Expert)

17 February 2015 See Dear, Take a practical view in this case, A Professional is always there in a company to remind the director either in whole time or as In practice. Exceptions are always there. in that case, the company has to file the required form at back date

c.bakshi

c.bakshi (Expert)

17 February 2015 Read Section 139(10) specify Where at any annual general meeting, no auditor is appointed or re-appointed, the
existing auditor shall continue to be the auditor of the company.

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