Section 139(6) of companies act, 2013

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Topic: Appointment of First Auditor & Sub topic: Section 139(6) of Companies Act, 2013

Section 139(6) reads as "Notwithstanding anything contained in sub-section (1), the first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within 30 days from the date of registration of the Company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting."

Section 139(6) is not clear and has given a scope to have different versions of interepretation.

Question:

a) Within 90 days from informing the members of the company?  or

b) Within 90 days from the date of incorporation?

c) What is the TIME LIMIT to inform members of the company that company has not appointed first auditors within 1 month from DOI? 

From a practical scenario perspective, many a times, apppointment of first auditor within 3 months (90 days) time may not happen. So, 90 days from the date of intimation to members of the company may be right the way to interpret and mean it.

 

Request experts and learned members to share their view point/opinion on this/or any clarification issued by MCA.

 

Thank you very much for your attention to this query!

 

 

 

 

 

 

Replies (5)

90 days after th 30 days time limit is over.

90 days limit will be origin, wen der z default... Hence aftr 30 days, 90 days limit starts..... Agreed with above

whether any ROC form like ADT-1 needs to be file for appointment of fisrt newly incorporation co.

@ Mitesh No, There is no requirement to file ADT 1 for the Appointment of Auditors in a newly incorporated company till AGM. Once AGM is conducted and Auditors are regularised the filing of Form ADT 1 becomes mandatory.

THANK YOU FOR YOUR VALUABLE INFORMATION..

to complete the appointment of  first CA is it enough "a board resolution to appoint a CA" or is there any other forms/letter submitted to that CA or from CA to Company..

if there require any forms/ letter please attach the same.

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