Section 139 clarification

Save Share

This query is : Resolved

CA Vivek (Querist)

23 July 2014 If first auditor is appointed by Board and he completes his tenure of one year, then whether he would be appointed for 4 yrs/ 5yrs , in first AGM as to comply section 139?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

24 July 2014 Company shall at the first AGM appoint an individual or a firm as an Auditor who shall hold office from the conclusion of that AGM till the conclusion of its 6th AGM and thereafter till the conclusion of every 6th meeting.
◦Even if the auditor is appointed for 5 years, then also members of the Company should ratify such appointment at every AGM.

However note that following Classes of Company required appointment of auditor on rotation basis:

(a) all unlisted public companies having paid up share capital of rupees ten crore or more;

(b) all private limited companies having paid up share capital of rupees twenty crore or more;

(c) all companies having paid up share capital of below threshold limit mentioned in (a) & (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now