Section 139(10) of the Companies Act

According to Section 139(10) of the Companies Act, 2013, if no auditor is appointed or re-appointed at an annual general meeting (AGM), the existing auditor will continue to be the company's auditor until the next AGM or until a new auditor is appointed, whichever is earlier. However, there are some exceptions and additional considerations: 1. Tenure: Even if the existing auditor's tenure has been completed, they will continue to hold office until the next AGM or until a new auditor is appointed. However, the maximum tenure for an auditor is 5 consecutive years for an individual auditor and 10 consecutive years for an audit firm (as per Section 139(2) of the Companies Act, 2013). 2. Rotation: If the existing auditor has completed their maximum tenure, they cannot continue as auditor even if no new auditor is appointed at the AGM. In this case, the company must appoint a new auditor. 3. Resignation or removal: If the existing auditor resigns or is removed, they cannot continue as auditor, and the company must appoint a new auditor. 4. Ineligibility: If the existing auditor becomes ineligible due to any reason (e.g., conflict of interest, loss of qualification, etc.), they cannot continue as auditor, and the company must appoint a new auditor. In summary, while the existing auditor may continue to hold office until the next AGM or until a new auditor is appointed, their tenure, rotation, resignation, removal, or ineligibility may affect their continuation as auditor. It is always best to consult with a legal or corporate governance expert for specific guidance.