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For a regular annual appointment, who appoints the statutory auditor of an ordinary non-government company and of a government company covered by section 139(5) of the Companies Act, 2013,…

Question and options

For a regular annual appointment, who appoints the statutory auditor of an ordinary non-government company and of a government company covered by section 139(5) of the Companies Act, 2013, respectively?

  1. Members at the AGM; the CAG

  2. The board; the CAG

  3. The board; members at the AGM

  4. Members at the AGM; the Central Government

Answer and explanation

Correct answer: A - Members at the AGM; the CAG

Under section 139(1) of the Companies Act, 2013 the members appoint the auditor of a non-government company at the annual general meeting, while under section 139(5) the Comptroller and Auditor-General of India appoints the auditor of a government company within 180 days from the start of the financial year. The board appoints only a first auditor under section 139(6) or fills a casual vacancy under section 139(8).

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