An individual auditor was appointed in a public unlisted company for a period of one year. The same auditor was reappointed next year. Is this the violation of time period specified under section 139(2)(a) ? If not, then can he be appointed for another 3years, so that the total tenure of such auditor doesn't exceed 5 conseqtive years?
As mention in Sec. 139(2) of the Act an individual as an auditor can not be appointed for more than one term of five consecutive years. So you can appoint him for next 3 years. Also in the proviso of Sec.139(2) also mentioned it.
If in the appointment letter it's mentioned only for 1 year then it means the company has appointed him for 1 year only. So from comapines point of view 1 year = 1 term. It's at the discretion of the company whether to appoint an auditor for 5 years as one term or less than 5 years as 1 term. But not more than that...
So in my opinion it's a violation. He is eligible to reappoint after the expiry of 5 years from the resignation.