Tenure of auditor from incorporation
This query is : Resolved
24 January 2018
Companies Act, 2013 says first auditor to be appointed by the Board of Directors within 30 days of incorporation. First Auditor will hold office till the conclusion of first AGM.
Thereafter, Auditor can be appointed for a period of 5 years from the conclusion of first AGM till the conclusion of 6th AGM. In the case of audit firm, they can be re-appointed from 6th AGM to 11th AGM.
My query is in this case, the tenure of auditor exceeds 10 years from the date of appointment by the Board. Is this logic correct?
Thereafter, Auditor can be appointed for a period of 5 years from the conclusion of first AGM till the conclusion of 6th AGM. In the case of audit firm, they can be re-appointed from 6th AGM to 11th AGM.
My query is in this case, the tenure of auditor exceeds 10 years from the date of appointment by the Board. Is this logic correct?
24 January 2018
The section 139(2) does not use the words "Ten Years" instead it says
No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint—
(a) an individual as auditor for more than one term of five consecutive years; and
(b) an audit firm as auditor for more than two terms of five consecutive years
Therefore, there is nothing wrong
No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint—
(a) an individual as auditor for more than one term of five consecutive years; and
(b) an audit firm as auditor for more than two terms of five consecutive years
Therefore, there is nothing wrong
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