Appointment of Auditor Archives - Tax Heal https://www.taxheal.com/tag/appointment-of-auditor Complete Guide for Income Tax and GST in India Wed, 29 Jul 2015 06:37:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Appointment include ratification https://www.taxheal.com/appointment-include-ratification.html https://www.taxheal.com/appointment-include-ratification.html#respond Wed, 29 Jul 2015 06:37:07 +0000 http://taxheal.com/?p=178 Query: Section 102(2) of the Companies Act, 2013 while defining ordinary business refers to appointment of and fixing remuneration of Auditors. While as per Section 139 of the Companies Act 2013, Auditor appointed for a term of five years needs to be ratified every year in AGM. Does the term as used in Section 102(2),… Read More »

]]> Query: Section 102(2) of the Companies Act, 2013 while defining ordinary business refers to appointment of and fixing remuneration of Auditors. While as per Section 139 of the Companies Act 2013, Auditor appointed for a term of five years needs to be ratified every year in AGM. Does the term as used in Section 102(2), appointment include ratification ? 
Answer: Annual Ratification is contemplated in law for ‘continuation of appointment’ of Auditors under Section 139(1) of the Act and Rule 3(7) of the Companies (Audit and Auditors) Rules, 2014. It falls
 within the scope of ‘appointment’ and hence is an item of ‘ordinary business’ to be transacted at
 the annual general meeting.
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