27 October 2014
Is it mandatory to appoint Statutory Auditors for five years under Section 139 (1) of the Companies Act,2013 for a private limited company having paid up capital of Rs.10 Lakhs.
Section 139 reads as follows Every company shall at the first Annual General meeting appoint an auditor who shall hold the office from the conclusion of that meeting till the conclusion of the sixth annual general meeting.
Here is that First AGM held after incorporation or First AGM held after the Commencement of the Companies Act,2013?.
27 October 2014
Yes, mandatory. To be read as 1st AGM after the commencement of the Companies Act,2013. Inference is from rule 7 of the Companies (Audit & Auditors) Rules,2014.
Thank you for your reply. But if you read the provision of Section 139(2) they have clearly mentioned the AGM as after the commencement of the Act. But no where in Section 139(1) and rules the word after the commencement of the Act is coming. I have reproduced the section below.
every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting and the manner and rocedure of selectionof auditors by the members of the company at such meeting shall be such as may be prescribed
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