Max Payne (employed) (2574 Points)
07 October 2014Friends
Is it mandatory that auditor appointment has to be made for 5 years, or is it permissible to have auditor appointed only till the end of next AGM?
What about appointment for 3 years?
If the appointment is for 3 or 5 years, should the Form ADT-1 be filed for ratification at each AGM?
Thanks in advance,
g.k.
CS Mitesh Mehta
(Company Secretary)
(17139 Points)
Replied 07 October 2014
The appointment of auditors shall be made for a 5 year term subject to ratification at every AGM.
According to my view, Ratification does not require filing of ADT-1
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 08 October 2014
Section 139(1) appointment includes re-appointment therefore the documentation & filing of form is also required at the time of re-appointment but Ratification does not require filing of ADT-1 but it will be a better practice if certificate of disqualification is obtained even in case of ratification.
Max Payne
(employed)
(2574 Points)
Replied 10 October 2014
Thank you for your replies.
If the appointment has been made otherwise than for 5 years, the appointment is void/voidable ?
Prima facie, it is contravening section 139.
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