Re: small pvt company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2015 Dear Sir, Please adviseas under :
1. A small Pvt Ltd. company has appointed a Proprietory firm since 2008-09 , is
the retiring auditor to be appointed in the AGM held on 30.09.2014 for 3 years
or 5 years ? Some professional are saying for 3 years ans some are of the view
for 5 years being a small pvt ltd.company.

2.Whether whole time directors in a small Private Limited Company are to be
appointed for 5 years only.Please advise.
3.Any good book on new company law.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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05 January 2015 1. The appointment of auditors shall be made for a 5 year term subject to ratification at every AGM.

2. YES. Section 196 of the Companies Act, 2013 provides that no company shall appoint or reappoint any person as its Whole Time Director for a term exceeding five years at a time and no reappointment shall be made earlier than one year before the expiry of his term.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2015 Thanks for the mail.Was this 5 year clause
earlier also for whole-time directors in a pvt ltd.company.Please advise.Thanks again.

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CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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05 January 2015 No.

Earlier the provisions of appointment of WTD for 5 years were not applicable to private company.