Procedure for Appointment of Auditor in Government Company

     

Procedure for Appointment of Auditor in Government Company

As per the provisions of Section 139(5) of the Companies Act 2013 in case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, the Comptroller and Auditor-General of India, shall, in respect of a financial year, appoint an auditor duly qualified to be appointed as an auditor of companies under this Act

Appointment of First auditors

The first auditor shall be appointed by the Comptroller and Auditor-General of India within 60 days from the date of registration of the company.

In case of non appointment of the First Auditors

In case the Comptroller and Auditor-General of India does not appoint such auditor within the said period, the Board of Directors of the company shall appoint such auditor within the next 30 days. In the case of failure of the Board to appoint such auditor within the next 30 days, it shall inform the members of the company who shall appoint such auditor within the 60 days at an extraordinary general meeting, who shall hold office till the conclusion of the first annual general meeting.

Appointment of the subsequent auditors

In respect to the subsequent auditors in government companies, in respect of a financial year, an auditor duly qualified to be appointed as an auditor of companies under the Companies Act, will be appointed by the Comptroller and Auditor-General of India within a period of 180 days from the commencement of the financial year, who shall hold office till the conclusion of the annual general meeting.

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