08 December 2017
Statutory Auditor Mr.A has Resigned from XYZ Pvt Ltd company in the Month of June 2017 before doing the Statutory Audit for FY 2016-17 of the company hence, Mr. B was Being Appointed in the Month of July 2017 till the ensuing AGM held on September 2017 so, Nov for reappointment of Mr.B for forthcoming years,considering the period of block of 5 years, he can be reappointed for 4 years or 5 years i.e. till the year ended March 2021 or March 2022..
09 December 2017
Auditor should be appointed for complete 5 years & not for 4 years. Law is silent on the point whether the period spent by auditor appointed for filling up the casual vacancy, should be counted. My interpretation is it should not be counted due to the following reasons : 1. Such appointment was up to AGM as per section 139(8),vacancy was created & filled up casually. hence reappointment will for fresh 5 year. 2. Counting/consideration of such period ( reappointment for balance period) is allowed in case of transition period as per 3rd proviso of section 139(2), and same thing has not been mentioned w.r.t. casual vacancy's appointment. 3. If we read the clause a of 139(2) it says .....about one/ two term(s) of 5 consecutive years, i.e. complete term of 5 years not part of the term as it is a fresh appointment. 4. Appointment of previous auditor was for complete 5 years ( assumed).
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