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.
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!
CAclubindia
