Whether sec 139(1) is applicable only to new companies?

Co Act 2013 519 views 2 replies

ankit somani

Partner

82 Points Joined November 2013

Dear all,

Some of our professional colleagues have been wrongly appointed Auditors for 1 year in last year in case of private companies (on which Rotation is NOT applicable)…..

Whether this year can they be appointed again for 1 year or remaining 4 years?

Some experts feel that applicability of Sec 139(1) is only on those companies which are registered in the Companies Act 2013 (and NOT on erstwhile companies)……..Is it really so?

What should be the remedial action NOW in Current Year?

Warm Regards

ANKIT SOMANI

FCA (Throughout 1st Attempt, Ranker)

CS (Ranker, Silver Medalist)

B. COM

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Replies (2)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Section 139(1) clearly provides that "every company shall, at the first annual general meeting, appoint.....". Section 2(20) defines company as a company incorporated under this Act or under any previous company law. It is not clear as to on what basis experts have given the opinion that this Section is not applicable to companies registered under previous Companies Act.

If the appointment has not been done as per Sec.139(1) last year, at least for this year the appointment should be as per this provision to avoid continued default.

prakash

Company Secretary

1352 Points Joined January 2012

Dear Ankit,

Section 139 (1) of the Companies Act, 2013 is applicable to every company whether registered under Companies Act, 2013 or any previous Act. see that, at least your company appoints auditor as per section 139 (1) of Act this year. since retire by rotation is not applicable to your company, company can appoint auditor for period of five year in this years AGM.