A company other than a government company has just been registered. Under section 139(6) of the Companies Act, 2013, who must first appoint its first auditor?
Question and options
A company other than a government company has just been registered. Under section 139(6) of the Companies Act, 2013, who must first appoint its first auditor?
The Central Government
The members in general meeting
The Comptroller and Auditor-General of India
The board of directors
Answer and explanation
Section 139(6) of the Companies Act, 2013 requires the board to appoint the first auditor within thirty days of registration. Only if the board fails do the members appoint one at an extraordinary general meeting within ninety days. The Comptroller and Auditor-General appoints the first auditor of a government company under section 139(7).
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