As per sec 139, in case of failure of the Board to appoint first auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor. So this 90 days is 90 days from 30 days or from registration of company?? Because the word ‘next’ 90 days is not mentioned in law.

Questions › Category: Co. Audit - I › As per sec 139, in case of failure of the Board to appoint first auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor. So this 90 days is 90 days from 30 days or from registration of company?? Because the word ‘next’ 90 days is not mentioned in law.

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Pooja Patel asked 8 years ago

Question Tags: 2013, Sec 139 of Companies Act

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Ravi Staff answered 8 years ago

Hello Pooja
2 interpretations are possible.
First it says that after failure of Board we should go to share holders, so we can interpret 90 days from end of 30 days. And at many places they have given 90 days / 3 months for AGM like in casual vacancy
Second interpretation is that we take it from date on incorporation because next word is not used, so it will be cumulative but such wordings or concept of cumulative days are not used anywhere else in law and it was earlier also.
In exam explain both views.