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Under section 139(6) of the Companies Act, 2013, the board appoints the auditor of a newly registered non-government company within thirty days of registration. Until when does that auditor hold…

Question and options

Under section 139(6) of the Companies Act, 2013, the board appoints the auditor of a newly registered non-government company within thirty days of registration. Until when does that auditor hold office?

  1. For one year from appointment

  2. For five consecutive years

  3. Till the conclusion of the sixth AGM

  4. Till the conclusion of the first AGM

Answer and explanation

Correct answer: D - Till the conclusion of the first AGM

Section 139(6) of the Companies Act, 2013 provides that the first auditor, appointed by the board within thirty days of registration, holds office till the conclusion of the first annual general meeting. The five-year term, running to the conclusion of the sixth AGM, applies to the auditor appointed by members at an AGM under section 139(1).

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