sec 139(10)

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when does this section applies and when not?
And what's the tenure of the auditor?
Replies (5)

(10) Where at any annual general meeting, no auditor is appointed or re-appointed, the

existing auditor shall continue to be the auditor of the company.

upasana, thnx for replying, but I asked WHEN? Now you gotta answer me that. I've heard that this subsection does not apply in some cases.(to listed co... something like that)
Also for how long he will continue.
for example if Reliance do not appoint new auditors at agm and the retiring audiors have completed their term and thus disqualified from reappointment. What does the law say then. I've heard some ppl saying law is silent. some says wherever rotation applies 139 10 don't apply.
139(2) will prevail because to maintain independence of auditor act have prescribed the tenure of 5 years for individual auditor, However company may appoint an individual auditor for less 5 years (i.e. 1,2,3 or 4) also in that case he may continue if Company fails to appoint or reappoint other auditor in any AGM, but he cannot continue more than 5 years in case of individual.

139(10) No where it has mentioned expressly that existing auditor will continue to be auditor if ** NO OTHER AUDITOR APPOINTED AFTER COMPLETION OF EXISTING AUDITORS TENURE**.
I figured it out. 139 10 doesn't apply to companies on which rotation is applicable. So yeah 139 2 overrule the former.


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