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Appointment of auditor for one year?

Preetam Mishra (Student CA IPC / IPCC) (23 Points)

16 November 2016

Sir,

Can the Auditor be appointed for one year by the Board of Directors?

Thanks.

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4 Replies

CS Peer mehboob (CS) (4434 Points)
Replied 16 November 2016

No, as per Sec.139(1), every company is required to appoint auditor for 5 years, in Annual General Meeting. However, Board of Director can appoint first auditor and also auditor in case of casual vacancy who can hold the office till the date of ensuing AGM.

Therefore, you can not appoint auditor for one year as per sec.139.

Preetam Mishra (Student CA IPC / IPCC) (23 Points)
Replied 16 November 2016

Thank You

lokeshkumaar (student) (77 Points)
Replied 17 November 2016

No, An Auditor other than the first auditor and casual vacancy auditor cannot be appointed for less than 5 years.

However you can appoint an Auditor for 5 years and need not ratify his appointment in the ensuing AGM. If you really want him for 1 year