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Appointment of auditor for less than 5 years

Radhika (Company Secretary) (303 Points)

24 September 2016

Hello...

Can a Company appoint an Auditor for less than 5 years?

Radhika

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8 Replies

(Guest)

No... Partial appointment is VOID... auditor should be appointed for 5 years... subject to Ratification in each AGM

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(Guest)

if uh Want.. don't ratify the appointment on AGM... he will hold less than 5 years

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 24 September 2016

Auditor can be appointed for less than 5 years. However, just keep in mind that this period will be considered as one term and he cannot be reappointed for more than two terms even if total period is less than 10 years.

Radhika (Company Secretary) (303 Points)
Replied 26 September 2016

Thank you, Sir.

CS Arvind meena (Corporate Law Consultant) (174 Points)
Replied 02 September 2017

As per Section 139 (1) "Subject to the provisions of this Chapter, 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"

So there is no question of appointment of audtior for less than 5 years. So appointment will be for 5 years.

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RAHUL AGARWAL (2 Points)
Replied 05 October 2018

If you are an auditor appointed under section 139(1) then you are to be appointed for exactly 5 years. However an auditor under section 139(2) can be appointed for less than 5 years(individual auditor) treated as a single tenure.Here 5 years cooling period will also apply.

THUKARAM NAYAK ( Tax Consultant) (23 Points)
Replied 25 December 2018

Arvinda Meenaji,

Whether appointment of Auditor for a term of 5 years is applicable for ONE PERSON COMPANY (OPC). Can auditor be appointed for less than 5 yeras for One person company.