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Re-appointment of auditor

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ATUL GARG

PARTNER

21 Points Posted on 06 February 2018

A Limited Unlisted Company with Paid-up Capital less than Rs. 10 Crore re-appointed auditor for a period of 5 years (from FY 2016-17 to FY 2020-21) in AGM of the FY 2015-16 on 20.09.2016 which is ratified by the member in AGM of FY 2016-17 on 15.09.2017. After that paid-up capital of the company increased above Rs. 10 Crore and Company went Public and becomes Listed Company. The present auditor is the auditor of the Company since more than 15 years.

Now

1. Whether auditor has to vacate due to rotation rules and new auditor will be appointed in AGM of 2018. OR

2. He may continue for remaining period of his appointed upto AGM of 2021.

Replies (3)

siva

Student CA Final

105 Points Posted on 06 February 2018

should be rotated

siva

Student CA Final

105 Points Posted on 06 February 2018

should be rotated

Shrijay Sheth

Co-Founder

2250 Points Posted on 07 February 2018

The statutory Auditor/ Auditor Firm in a Public Company shall not hold the office for a period exceeding 5/10 years. In given case, the auditor has already occupied the place for a period of 15 years. The condition of rotation requires vacation of office on completion of period for which Auditor or firm is appointed or completion of term of 5/10 years.

Here, the auditor has already completed the period of 15 years. Hence, he should vacate the office as his tenure period exceeds the limit prescribed.

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