Appointment of Auditor [Sec. 139]
Company [Section 2 (45)], "as a company in which not less than 51% of the
paid up share capital is held by the Central or State Government or Governments
or partly by the Central government and partly by one or more State
The first auditor of Government company shall
be appointed by the Comptroller and Auditor General of India within 60 days
from the date of registration of the company.
In case the Comptroller and Auditor General of
India does not appoint such auditor within 60 days, the Board of Directors of
the company shall appoint first auditor within next 30 days.
In case of failure of the Board to appoint the
first auditor, it shall inform Members of the company who shall appoint first
auditor within 60 days at an Extraordinary General Meeting.
First Auditor shall hold office till the
conclusion of the first Annual General Meeting.
Comptroller and Auditor General of India shall appoint subsequent auditor of
Government companies within 180 days from the commencement of the financial
year and who shall hold office till the conclusion of the Annual General
of auditor due to casual vacancy in Government Company is filled by the
Comptroller and Auditor General of India within 30 days. If he fails to do so,
the Board of Directors shall fill within next 30 days.
first auditor of a company other than a Government company, shall be appointed
by the Board of Directors within 30 days from the Date of Registration of the
of failure of the Board to appoint the auditor, it shall inform the members of
the company. The Members shall appoint the auditor within 90 days at an
Extraordinary General Meeting.
First Auditor shall hold office till the conclusion of the first Annual General
company shall appoint an individual or a firm as auditor of the company at the
first Annual General Meeting.
appointed auditor shall hold the office till the conclusion of sixth Annual General
Meeting and thereafter till the conclusion of every sixth meeting.
Company shall place the matter relating to such appointment of ratification by
member at every Annual General Meeting.
such appointment is made, the written consent of the auditor to such
appointment and also a certificate from the auditor that he is eligible for
appointment shall be obtained from the auditor.
company shall inform the appointed auditor and also file a notice of such
appointment with the Registrar within 15 days of the meeting in which the
auditor is appointed.
vacancy arise due to death or insanity or insolvency of an auditor. If an
auditor is disqualified after his appointment, he shall vacate his office as
auditor. Such vacation shall be deemed to be a casual vacancy in the office of
of auditor's in case of casual vacancy shall be done by the Board of Directors
within a period of 30 days.
vacancy is due to resignation of an auditor, such appointment shall also be
approved by the company at a General Meeting convened within 3 months of the
recommendation of the Board.
auditor shall hold office till the conclusion of the next Annual General