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.
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
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.
Thank you for your replies.
If the appointment has been made otherwise than for 5 years, the appointment is void/voidable ?
Prima facie, it is contravening section 139.
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