139 clause companies bill

As per Clause 139 of Companies Bill,2011

 


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
 
Does that mean appoint ment of auditors in general meeting has been done away with and auditor can be appointed for 5 years' term or auditor can be appointed only for term?

Hope I am clear.
Replies (5)

No, it does not mean appointment of auditor in AGM is done away with. It just mean that individual auditor cant be appointed after the expiry of the said term even if shareholders agree to such appointment

As per the Sec 139 (2)  - Listed Companies or  companies as prescribed cannot appoint an Individual as an auditor for more than one term of 5 consecutive years. But there is no such restriction for companies other than Listed / Prescribed.

 

Provided that the company shall place the matter relating to such appointment for ratification by members at every annual general meeting.

 

Can u guys plz elaborate.. i dint get u.. 

Originally posted by : Akanksha Jain

Can u guys plz elaborate.. i dint get u.. 

In short auditor's appointment is to be done at every AGM however shareholders' cannot appoint auditor for more than the term stipulated in said clause

Okay!!!

Thanxx.. :)

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