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auditor not appointed under general meeting

vivek (ca student) (37 Points)

04 November 2017

if an auditor completed five consultative year and new appointment was not done in agm. then whether or not
retiring auditor appoint automatically

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6 Replies

Madhwesh K (272 Points)
Replied 04 November 2017

sub section (10) of section 139 allows existing auditor to continue when appointment is not done at AGM...

however since this section neither specify time limit not penalise non-appointment, it allows misuse..

vivek (ca student) (37 Points)
Replied 04 November 2017

well can we give here reference of section 224(3) of co. act 1956

Madhwesh K (272 Points)
Replied 04 November 2017

erstwhile law doesn't have effect unless the event happened prior to new act..

vivek (ca student) (37 Points)
Replied 04 November 2017

but some provisions are applicable where new law silent on any facts

Madhwesh K (272 Points)
Replied 06 November 2017

hi.. it's a good question on interpretation..

however, plain reading of section 465 of the new act imolies direct repeal of old act (including provisions on auditor in our specific case).. however few provisions which touch producer company, LLP..etc are left to operate until substitute laws are made effective..

in our case laws relating to auditor are already substituted.. so old section doesn't have effect... if some part of old section is dropped in new section, then v can't assume old part's application.. because such assumption defeats the intention of new law.. example: earlier there was specific provision that an Indian private company subsidiary of foreign public co. will b treated as public co. here. This part is specifically dropped in the new act, in order to facilitate such subsidiary to continue to be treated as private here. on the other hand, if v assume that such provision is still operational, then v r defeating the purpose of new law..