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Company audit chapter

AMRITA SINGH (KOLKATA) (419 Points)

26 February 2020

Within how many days members shall appoint the first auditor of govt company if board fails to appoint?

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Saikrishnan S (Chartered accountant - Plintron) (186 Points)
Replied 26 February 2020

In case of Government companies (or) Companies controlled by combination of central / state government, according to Section 139 (7) of Companies Act, 2013 :

"the first auditor shall be appointed by the Comptroller and Auditor-General of India within sixty days from the date of registration of the company and in case the Comptroller and Auditor-General of India does not appoint such auditor within the said period, the Board of Directors of the company shall appoint such auditor within the next thirty days; and in the case of failure of the Board to appoint such auditor within the next thirty days, it shall inform the members of the company who shall appoint such auditor within the sixty days at an extraordinary general meeting, who shall hold office till the conclusion of the first annual general meeting"