VISION COLLEGE OF MANAGEMENT

SUBMITTED TO,
MISS.KEERTI TIWARI
SUBMITTED BY,
MS.ANAM FATIMA
3rd year
ROLL NO. : 0204566
PROVISION OF RE-APPOINTMENT OF COMPANY
AUDITOR
APPOINTMENT OF FIRST AUDITOR
As per section 139(6) the first auditor of the company
shall be appointed by the Board within 30 days of
Incorporation. In case of Board’s failure, an EGM
shall be called within 90 days to appoint the first
auditor. The law is silent regarding from when this
time limit of 90 days be reckoned, it is better to take a
stricter view and interpret that the 90 days limit starts
from Incorporation rather than expiry of 30 days(i.e.
failure of Board) from it.
Tenure: – Till conclusion of 1st annual general
meeting.
Article Section

Rotation of the partner

The sub-section (3) provides for the provision for rotation of aud
firm. A company may resolve that the auditor and his team in the a
may be resolved by members, or the audit shall be concluded by m
First auditors
The power to appoint first auditors of the company (other than Go
Directors. The first auditors of the company are to be appointed b
the company. The first auditor appointed by the Board shall hold
General Meeting of the company. The remuneration of the first au
AGM, auditor shall be appointed for a team of 5 years till the concl
In case the Board fails to appoint the first auditor of the company
shall inform the same to members, who shall appoint the first au
meeting. Such auditor shall hold office till the conclusion of first an
It is not clear from which date, these ninety days shall be counted
section it appears that it shall be from the expiry of first thirty days.
Appointment of Auditor in Government Company
The appointment of auditor in Government company or gover
accordance with the following provisions:
a)  First auditor shall be appointed by the Comptroller and Audi
incorporation and in case of failure to do so, the Board shall appo
to do so, the members will appoint the auditor within 60 days, who
General Meeting.
b)  The first auditor of the company other than Government compa
days of its incorporation and in case of failure to do so, the mem
form incorporation, who shall hold office till conclusion of first Annu
c)  In case of subsequent auditor for existing government compa
appoint the auditor within a period of 180 days from the commenc
appointed shall hold his position till the conclusion of the Annual G
d)  In case the company has an Audit Committee, then all appo
vacancy, shall be made after taking into account the recommenda
Casual Vacancy in the office of auditor
The provisions for filling of casual vacancy in the office of auditor a
(a)  The Board of the company shall have power to fill the casual v
in any case except where –
(i)   the casual vacancy occurred due to resignation of the auditor,
(ii)  the company accounts are subject to audit by an auditor appo
of India.
(b)  In case casual vacancy has occurred due to resignation of au
by the company in general meeting convened within 3 months o
shall hold the office till the conclusion of the next annual general m
(c) In case of a company whose accounts are subject to audit by
Auditor-General of India, such vacancy should be filled by the Co
30 days.
(d) In case the Comptroller and Auditor-General of India does n
Board of Directors shall fill the vacancy within next 30 days.
(e) Appointment of auditors to fill casual vacancy shall be made a
of the audit committee.
Re-appointment of retiring auditor
The provisions also apply to reappointment as appointment would
At any annual general meeting, a retiring auditor shall be reappoi
the circumstances specified. In the following circumstances, it w
reappoint the retiring auditors if:
(a)  he is not qualified for re-appointment.
(b)  he has given the company a notice in writing of his unwillingne
(c) a special resolution has been passed at that meeting appointin
expressly that retiring auditor shall not be re-appointed.
(d) the ceiling for number of terms mentioned in the sub-section (
reached.
Audit Committee
Where a company is required to constitute an Audit Committee u
the filling of a casual vacancy of an auditor under this section, sh
recommendations of Audit Committee.
Rules to be Prescribed
Draft Rules in relation to the following have been prescribed s
2013 –
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(a)  Prescription of conditions subject to which the appointment of

(1).
(b)  Classes of Companies in which there shall be a restriction o
Auditor or audit firm,
(c)  Rules regarding the manner in which the Companies shall rota
Government.
(d)  Rules regarding reappointment of the retiring auditor at the an