Sir, in Section 139(1) if the company does not appoint the auditors at its first AGM can we conclude that the First auditors are reappointed?
Sir, I would like to add to the above query little elaborately, take for an example sir, a company has been incorporated, now the first auditors are to be appointed by the BOD within 30 days of registration of company as per Section 139(6), let us consider that the BOD has appointed them so the first auditors would hold their office from the date of appointment to the conclusion of the First AGM. In meantime, the First AGM has also arrived, now as per the provisions of section 139 ”Every Company shall at its First AGM appoint an Individual or Firm as an auditor of the company and this auditor so appointed would hold office from the conclusion of the first AGM till the conclusion of the Sixth AGM”. Now actually my doubt is if the Company does not appoint an auditor at the first AGM would it trigger the provisions of “Automatic Reappointment of Retiring Auditor” or Would it be Something Else?
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.
Above subsection doesnt specify, first or subsequent AGM, it simply specifies AGM, so it applicable to first AGM also, if no auditor is appointed or reappointed then automatic reappointment will happen and tenure will continue till next AGM