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Appointment of first auditor

MANISHA SHARMA (ARTICLE ASSIATANT) (25 Points)

30 March 2015

In case a company has been incorporated in the month of December,2013 is the required to follow the section of Companies Act 2013. If yes then as per section 139(7) in case of companies other than government companies, first auditors are to be appointed by the board of directors within 30 days from the incorporation date. Is it compulsory for tye private company to intimate the registrar about the appointment of first auditor. Please resolve my query as soon as possible.

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3 Replies

chandar (Deputy Manager-Accounts) (296 Points)
Replied 30 March 2015

As per section 139(6) the first auditor of the company shall be appointed by the Board within 30 days of Incorporation. In case of Board’s failure, an EGM shall be called within 90 days to appoint the first auditor. The law is silent regarding from when this time limit of 90 days be reckoned, it is better to take a stricter view and interpret that the 90 days limit starts from Incorporation rather than expiry of 30 days(i.e. failure of Board) from it.

chandar (Deputy Manager-Accounts) (296 Points)
Replied 30 March 2015

Since section 139(6) does not speak anything contrary to section 139(1) as far as obtaining of consent, certificate and filing of form is concerned therefore in can be interpreted that ADT-1 should be filed with ROC for first auditor also.