Appointment of First Auditors
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. Remuneration: – As per proviso to section 142(1) remuneration of the first auditor can be decided by the Board.
Documents required:
a. Consent Letter
b. Intimation
c. Board Resolution
Which form to be filed?
Form ADT 1 with the Registrar of Companies
When to be filed?
Within 30 days of registration or within 90 days of Extra Ordinary General Meeting
I would suggest to file for Auditors Appointment even if 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.
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. Remuneration: – As per proviso to section 142(1) remuneration of the first auditor can be decided by the Board.
Documents required:
a. Consent Letter
b. Intimation
c. Board Resolution
Which form to be filed?
Form ADT 1 with the Registrar of Companies
When to be filed?
Within 30 days of registration or within 90 days of Extra Ordinary General Meeting
I would suggest to file for Auditors Appointment even if 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.
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