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Can a Company appoint an Auditor for less than 5 years?
Radhika
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Appointment of auditor for less than 5 years
Replies (8)
Auditor can be appointed for less than 5 years. However, just keep in mind that this period will be considered as one term and he cannot be reappointed for more than two terms even if total period is less than 10 years.
Thank you, Sir.
As per Section 139 (1) "Subject to the provisions of this Chapter, every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting"
So there is no question of appointment of audtior for less than 5 years. So appointment will be for 5 years.
If you are an auditor appointed under section 139(1) then you are to be appointed for exactly 5 years.
However an auditor under section 139(2) can be appointed for less than 5 years(individual auditor) treated as a single tenure.Here 5 years cooling period will also apply.
Arvinda Meenaji,
Whether appointment of Auditor for a term of 5 years is applicable for ONE PERSON COMPANY (OPC). Can auditor be appointed for less than 5 yeras for One person company.
Shall we appoint an auditor for less than 5 years for listed company??if yes then under which section??
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