Ratification of Auditor

    Posted By : CS Gaurav / Published on : 06-Feb-2018 11:27 PM / View : 521 / Comment : 1
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    Dear All As we know, an Auditor shall be appointed under Section 139 i.e. for 5 years subject to the ratification by the members at each AGM. Now, suppose an auditor was appointed for 5 FY i.e. 2014-15 to 2018-19 and the members of the company do not ratify the auditor the AGM of 2017. in that case is it a removal of Auditor and the company is supposed to file form ADT-2?? In my view, it's not the removal, because the position of the auditor automatically expires at the AGM. Please suggest.
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    • No, it is not a removal of Auditor.

      As per Section 139(9) of the Companies Act 2013, an Auditor shall be ineligible to be re-appointed if it doesn't fulfill the conditions mentioned in this Section.

      Further, as per Section 139(10), 

      Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company.


      10-02-2018 / 07:42:53 AM

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