Can auditor be appointed for 1 year?
After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.
How an auditor is appointed in a company?
Appointed by the Board Of Directors. This has to be done within 30 days from the date of Registration. Appointment can also be done by Members at Extraordinary General Meeting within 90 days of information.
Which section of the Companies Act 2013 deals with appointment of auditor?
Section 139(6) of the Companies Act, 2013 lays down that first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within 30 days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of …
Can we appoint auditor for a period less than 5 years?
An individual auditor or an audit firm who has completed his or its term under clause (a) shall not be eligible for re-appointment as auditor in the same company for five years from the completion of his term.
What if auditor is not appointed within 30 days?
If the Board fails to appoint First Auditor within 30 days from the date of registration/Incorporation of the company, it shall inform the members of the company and the members shall make the appointment of first auditor within 90 days of information at an Extra-Ordinary General Meeting.
What is Third Schedule Companies Act 2016?
To establish and support or aid in the establishments and support of associations, institutions, funds, trusts, and conveniences calculated to benefit employees or directors or past employees or directors of the company or of its predecessors in business, or the dependents or connections of any such persons; and to …
How and when should an auditor be appointed?
Section 357 of the Companies and Allied Matters Act (CAMA) requires every company to appoint an Auditor or Auditors at every Annual General Meeting (AGM) by way of approval of 75% or three-quarters of the members present and voting at the AGM. Such Auditor(s) appointed at the AGM shall hold office until the next AGM.
Can auditor be appointed for 5 years in casual vacancy?
(EGM shall be conducted within 3 months from the date of recommendation of the Board). 4. Otherwise, such auditor can be re-appointed for a period of 5 years under section 139(1) of Companies Act, 2013.
Under which section a company auditor is appointed Mcq?
[D] Section 242(B).
Can auditor be appointed 2 years?
According to Section 139(2): No Company can appoint any Auditor for a period less than 5 year. After completion of 3 year Transitional period as given in third proviso of Section 139(2).
What are the Audit and Auditor rules of Companies Act 2013?
In this article, unless otherwise expressly provided all sections referred to are of Companies Act, 2013 and rules referred to are of Companies (Audit and Auditor) rules, 2014. As per section 139 (6) the first auditor of the company shall be appointed by the Board within 30 days of Incorporation.
How is the appointment of the first Auditor of the company?
The members shall ratify the appointment of the first auditor in the first annual general meeting of the company. The first auditor of the company holds office from the conclusion of the first annual general meeting until the conclusion of the sixth annual general meeting and after this until the conclusion of every sixth meeting.
What is the law under which we appoint auditors?
The law under which we appoint lays down the procedure of appointment of auditors and also the rights, duties and the functions of the auditor. An auditor shall be independent. Here we will discuss the appointment of an auditor as per the provisions of the Companies Act, 2013.
What is the procedure for appointment of Auditor General of India?
In respect of a financial year, the Comptroller and Auditor-General of India shall appoint an auditor within a period of one hundred and eighty days from the commencement of the financial year. Such auditor shall hold office until the conclusion of the annual general meeting.