Apointment of auditor u/s 139(1)

958 views 3 replies

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.

Replies (3)

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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