If auditor’s appointment is not ratified in AGM and then 139(10) applies which says old auditor will continue then what will be the significance of ratification of 139(1)…Rule 3(7) says BOD will appoint if auditor is not ratified in AGM..question is how rule can override the Act

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If auditor’s appointment is not ratified in AGM and then 139(10) applies which says old auditor will continue then what will be the significance of ratification of 139(1)…Rule 3(7) says BOD will appoint if auditor is not ratified in AGM..question is how rule can override the Act

Questions › Category: Co. Audit - I › If auditor’s appointment is not ratified in AGM and then 139(10) applies which says old auditor will continue then what will be the significance of ratification of 139(1)…Rule 3(7) says BOD will appoint if auditor is not ratified in AGM..question is how rule can override the Act

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audit Staff asked 9 years ago

Question Tags: AGM, Auditor, Sec 139(10)

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admin answered 9 years ago

Suppose auditor is appointed on 8th AGM he will continue till 13th AGM. Ratification is required in 9/10/11/12 AGMs, if there is no ratification it will be casual vacancy board will appoint. if “No Appointment” at 13th AGM then automatic reappointment is applicable. Both concepts are for different purpose.