Section 139(1) lays down that every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting. Provided that the company shall place the matter relating to such appointment for ratification by members at every annual general meeting.
- Auditor shall be appointed in First annual general meeting to hold office till the conclusion of sixth annual general meeting of the Company. . [Section 139 (1) and Rule 3(7) of Companies (Audit and Auditors) Rules, 2014]
- Tenure of auditor appointed is for 5 years subject to ratification by members at every annual general meeting by passing an ordinary resolution. [Section 139 (1) and Rule 3(7) of Companies (Audit and Auditors) Rules, 2014]
- Where a company is required to constitute an Audit Committee under section 177, the committee, and, where a company is not required to constitute an Audit Committee, the Board, shall take into consideration the following:
- Qualifications and experience of the individual or the firm proposed to be considered for appointment as auditor
- Whether qualifications and experience of proposed auditor are commensurate with the size and requirements of the company
- Any order or pending proceeding relating to professional matters of conduct against the proposed auditor before the Institute of Chartered Accountants of India or any competent authority or any Court.
The following procedure is to be followed for appointment of an auditor at the first Annual General Meeting [Section 139 & 141 and Rule No. 3, 4 and 10 of the Companies (Audit and Auditors) Rules, 2014] - https://lexcomply.com/l9u5