Appointment of Auditor | Section 139 | Auditing | Company Auditor |

Appointment of the First Auditor in other than Govt Company [Sec. 139(6)]
The first auditor of a company, other than a Government company, shall be appointed by the Board of Directors (only by BOD) within 30 days from the date of registration (i.e., Date of Incorporation) of the company.
In the case of failure of the Board to appoint such auditor, it shall inform the members of the company,who shall appoint within 90 days at an extraordinary general meeting (EGM).
The first auditor shall hold office from the date of appointment to till the conclusion of the first AGM.

Appointment of the First Auditor of Government Company [Sec. 139(7)]
First auditor shall be appointed by the CAG (Comptroller & Auditor General of india) within 60 days from the date of registration of the company.
In case the CAG does not appoint such auditor within the said period, the Board of Directors of the company shall appoint such auditor within 30 days.
In the case of failure of the Board to appoint such auditor, it shall inform the members of the company within the next 30 days and who shall appoint such auditor within the 60 days at an EGM.
The auditor so appointed shall hold office from the date of appointment till the conclusion of the 1st AGM.

Appointment of Subsequent Auditor (in other than Government Company) Sec 139(5)
Every company shall, at the First AGM, appoint an individual or a firm (includes LLP) as an auditor of the company.
The auditor shall hold office from the conclusion of 1st AGM till the conclusion of its 6th AGM(i.e., for 5 years); Appointment takes place only for 5 years, it means – No company can appoint auditor for less than 5 years. The AGM, in which he is appointed is counted as 1st AGM.

Appointment of Subsequent Auditor
(in Government Company) Sec 139(1)

Subsequent Auditor in a Government company is appointed by C&AG (Comptroller & Auditor General of India) within 180 days from commencement of financial year
Such auditor shall hold office till the conclusion of next AGM


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