Companies (Removal of Difficulties) Third Order, 2016

Section 139 of CA 13, which deals with appointment of auditors, inter alia, provides that no listed company and companies falling within the prescribed class are allowed to appoint / re-appoint an individual / an audit firm, respectively, as an auditor for more than one term of five consecutive years in case of an individual and two terms of five consecutive years in any other case. As per the provisions of Section 139(1), companies are required to appoint / re-appoint auditors at annual general meetings only.

Pursuant to the Companies (Removal of Difficulties) Third Order, 2016, effective retrospectively from April 1, 2014, MCA has allowed compliance with the above requirements within a period ending no later than the date of the first annual general meeting held three years after the date of commencement of CA 13.

Published In:Inter Alia - Quarterly Edition - July 2016 [ English Chinese japanese ]
Date: July 1, 2016