Appointment of Auditor

As mention in Sec. 139(2) of the Act an individual as an auditor can not be appointed for more than one term of five consecutive years. So you can appoint him for next 3 years. Also in the proviso of Sec.139(2) also mentioned it.

 

 

yes he appoint for 3 more years..

If in the appointment letter it's mentioned only for 1 year then it means the company has appointed him for 1 year only. So from comapines point of view 1 year = 1 term. It's at the discretion of the company whether to appoint an auditor for 5 years as one term or less than 5 years as 1 term. But not more than that...

So in my opinion it's a violation. He is eligible to reappoint after the expiry of 5 years from the resignation.

Here it matters consecutive period of 5 years.