SECTION 139(10) OF THE COMPANIES ACT, 2013 CASE

Dear Members, Statutory Auditor Firm was originally appointed for period of 5-year (2014–2019) in a pvt. ltd. company.

At the conclusion of the F.Y- 2018-2019 AGM, neither a new auditor was appointed nor was the existing auditor formally re-appointed by a resolution. Consequently, the existing auditor has continued to function under the operation of Section 139(10).They continue with the same SRN of ADT-1 from 2019 to 2025,

In this case my question are:-

  1. whether a board approval was/is require to pass for its continuation ?
  2. whether a shareholders approval was/is require to pass for ratification of its remuneration?
  3. Its is necessary to file Form ADT-1? please provide me any case law which protect company from it. please give your views....
Replies (1)
  • Continuation: Automatic under Section 139(10) without needing a new appointment resolution.

  • Remuneration: Member approval is still required under Section 142 to fix auditor fees.

  • Form ADT-1: Not required/applicable since no formal re-appointment occurred at the AGM.

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