Procedure for appointment of Auditor Under the Companies Act, 2013 (Section 139) By Priyanka Sharma



1. APPOINTMENT OF SUBSEQUENT AUDITOR:-

  • 1ST Appoint Auditor

  • Hold Office-Conclusion of meeting till the Conclusion of 6th meeting

  • Written consent of Auditor

  • Notice to Registrar shall be inform in ADT-1

  • Company shall inform the Auditor for his appointment within 15 Days of meeting

2. No Listed Company or company specified shall not appoint or re appoint

  • individual-for more than one term of 5 consequent year

  • Audit Firm-for more than two term of 5 consequent year

The companies which are specified are

  • all unlisted Companies having psc of 10 cr.

  • all private companies having psc of 5 cr.

  • all companies having psc as above, but having public financial borrowings of 50cr.

3. In audit firm-The auditing partner shall Rotate at such intervals and the audit can be conducted by more than one auditors

4. Manner of Rotation of Auditor

5. In case of Government Company-C&AG shall appoint an Auditor Within 180 days from the Commencement of financial year(Subsequent Auditor)

6. 1st Auditor(Other than government company)- Shall be appointed by BOD within 30 Days from the date of Registration of Company, If board fails to Appoinment, members will appoint  within  90 days of EOGM

7. 1st Auditor(Government company)- 1st Auditor shall be appointed by C&AG within 60 days from the date of registration of company

If C&AG does not Appoint then BOD shall Appoint within next 30 Days

If BOD fails then members will Appoint within 60 Days of EOGM

8. Casual Vacancy-Auditor (not appointed by C&AG), if casual vacancy is the resignation of auditor,such shall be approved by auditor in GM (convened with 3 months)

he shall hold the office till the conclusion of the next AGM

Auditor(Appointed by C&AG)-shall be filed by C&AG within 30 Days,if C&AG does not file then BOARD shall the vacancy within Next 30 Days

9. Where no Auditor is Appointed then Existing Auditor shall continue

10. If Audit committee is formed then, Filling of Casual Vacancy shall be included

Lex comply

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