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Appointment of Auditor

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Piyal Dutta

2 Points Posted on 23 March 2018

How to appoint a auditor for a private limited comapny?

Within how many days after the incorporation of the company, a auditor is to be hired?

If failed to appoint a auditor within the legal time, what are the consequences?

Replies (2)

CA Subhash Rawat

15 Points Posted on 23 March 2018

as per sec 139 u have to appoint an auditor within 30 days of incorporation of the company and it is to be appointed by board of directors if they failed then member shall appoint within 90 days calling an EGM..

Jatin Bajaj

2942 Points Posted on 23 March 2018

As per the provisions of Section 139(6), the First auditor in case of private Company shall be appointed by Board within 30 days of incorporation of Company and if Board fails to appoint within 30 days then within 90 days from date of Incorporation shall be appointed by shareholders in AGM and such Auditor shall hold thre office till the Conclusion of First AGM of the Company.

For appointment of First Auditor there is no need to file Form ADT 1. Further after First AGM , such same auditor or different auditor can be appointed for a period of 5 years who shall hold the office from conclusion of that meeting till the conclusiuon of sixth AGM of the Company. After the first AGM , file form ADT 1 for appointment of Auditor within 15 days of AGM