Yash SaxenaYash Saxena asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

Hello Yash
So situation is 
–>Rotation applicable to company
–>Individual CA has completed his tenure of 1 term of 5 years
–>So now rotation is applicable as per 139(2)
–>Further appointment of next auditor has failed in AGM, so no appointment at AGM which will lead to automatic reappointment under 139(10)
–> So 139(2) says change auditor & 139(10) says reappointment him
–> Ok now answer is 139(10) wordings says that other subsections will over ride it, so rotation will override automatic reappointment.
–> Auditor will be changed and automatic reappointment will not take place.
–> In such case there will be vacancy and law is silent about it. (As law is prepared for normal circumstances and not unusual situation like this). Company will have to ask authorities what to do in such case.

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