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Apointment of auditor u/s 139(1)

Max Payne (employed) (2569 Points)

07 October 2014

Friends

Is it mandatory that auditor appointment has to be made for 5 years, or is it permissible to have auditor appointed only till the end of next AGM?

What about appointment for 3 years?

If the appointment is for 3 or 5 years, should the Form ADT-1 be filed for ratification at each AGM?

Thanks in advance,

g.k.

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3 Replies

CS Mitesh Mehta (Company Secretary) (17139 Points)
Replied 07 October 2014

The appointment of auditors shall be made for a 5 year term subject to ratification at every AGM.

According to my view, Ratification does not require filing of ADT-1

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Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 08 October 2014

Section 139(1) appointment includes re-appointment therefore the documentation & filing of form is also required at the time of re-appointment but Ratification does not require filing of ADT-1 but it will be a better practice if certificate of disqualification is obtained even in case of ratification.

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