![]() Every private company having paid up share capital of rupees 50 crore of more.All unlisted public companies having paid up share capital of rupees 10 crore or more.*Specified class or classes of the Companies are as follows: We have illustrated the concept as follows: However, as per Section 139(2), certain Companies cannot continue with the same auditor after expiry of one term (in case of individual) or two terms (in case of firm) of five years. appointed after the completion of tenure of first Auditor at the first Annual General Meeting of the Company, shall hold the office from the conclusion of the first Annual General Meeting till the conclusion of sixth Annual General Meeting and thereafter till the conclusion of every sixth meeting, so on and so forth. The first Auditor, appointed as above, shall hold the office till the conclusion of the first Annual General Meeting of the Company.Ģ.1 What is the term of appointment of subsequent Auditor under Companies Act, 2013? What would be the tenure of office of the first Auditor? The members shall within a period of 90 days from date of incorporation, at an extraordinary general meeting, appoint the first Auditor of the Company.ġ.3. ![]() If the Board fails to appoint such Auditor, then it shall inform the members of the Company about the same. Having said this, in general practice the first Auditor is appointed at the first Board Meeting.ġ.2 What if the Board is not able to appoint the first Auditor within 30 days of incorporation? Note: The governing law, the Companies Act, 2013 (the “Act”) nowhere specifies that the first Auditor shall be appointed at the first Board Meeting of the Company, it only mandates to appoint the Auditor within 30 days from the incorporation. E-form ADT-1 is required to be filed within 15 days from the date of appointment. ![]() The First Auditor shall be appointed by the Board within a period of 30 days from the date of registration (incorporation) of Company. We have summarised here as few aspects relating to appointment of auditor, tenure, filling up casual vacancy, rotation etc.:ġ.1 I have just incorporated a Company, when do I need to appoint the first Auditor of the Company and how? ![]() Pursuant to the provision of Section 141 (1) of the Companies Act, 2013 a person or a firm shall be eligible for appointment as an auditor of a company only if he is a chartered accountant or majority of partners of the firm is a chartered accountant and practising in India. Prime Minister Narendra Modi had once referred chartered accountants as “big pillar” of the Indian economy and their services to the nation are deeply valued. ![]() Indian chartered accountants are known worldwide for their higher understanding and financial skills. Updated by Pooja Dhiman and Janvi Gupta as on October 29, 2020 FAQs on appointment / rotation / removal of Auditor under Companies Act, 2013 (Other than Government Company) 9 November 2016 ![]()
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