Appointment of auditors

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2014 As per Co. act 2013 auditors to be appointed for 5 years. if a small pvt ltd co. has XYZ co. as auditors for last two years, then whether XYZ co. to be reappointed in SEPTEMBER, 2014 AGM for 3 years (upto F.Y 2016-2017) as per prov of section 139 illustration?? After that he will be reappointed for 5 years. PLZ CLARIFY...

Ankur Garg

Ankur Garg (Expert)

03 October 2014 No need to consider it as 2+3==5.

You have to appoint him from 2014 AGM for next 5 years under section 139(1).

However things may be different if you are talking about rotational appointment under section 139(2). So check whether auditor rotation under section 139(2) is applicable on your company.

Thanks

Ankur Garg

Ankur Garg (Expert)

03 October 2014 Sample resolution for appointment of Auditor:

“RESOLVED THAT pursuant to the provisions of Section 139, 142 and other applicable provisions, if any, of the Companies Act, 2013 read with Companies (Audit and Auditors) Rules, 2014, (including any statutory modifications or re-enactment thereof, for the time being in force), M/s ABC & Associates, Chartered Accountants¬¬¬¬¬¬¬¬¬¬¬¬¬¬, bearing ICAI Firm registration no. _____________, be and are hereby re-appointed as the auditors of the Company from the conclusion of this Annual General Meeting until the conclusion of the Annual General Meeting of the Company for the Financial Year ending 31.03.2019, subject to ratification by the shareholders annually, at a remuneration to be decided by the Board.”

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