The Board of Directors of normal company other than government company fails to appoint first ...........

Companies Act-Phase (I & II) Audit and auditors

The Board of Directors of normal company other than government company fails to appoint first auditor within 30 days from the date of incorporation then first auditor shall be appointed by company in the Extra Ordinary General Meeting within 90 days from the date of incorporation. True or False.

True

False

Partly True

Partly False

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Explanation:

Sec 139(6) This section provides that the First Auditor will be appointed by the BOD within 30 days from the date of registration of the company. In case BOD fails to appoint the auditor within such time then they shall inform the members of the company regarding such failure. Now the member will appoint the auditor at an extraordinary general meeting within 90 days. The auditor so appointed shall hold the office till the conclusion of first AGM.