Appointment of Auditors :
The provisions of sub-section 1 of section 139 dealing with appointment of auditors can be briefly stated as under.
• Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting.
• The company shall place the matter relating to such appointment for ratification by members at every annual general meeting.
• Before the appointment of auditor is made, the written consent of the auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor.
• The certificate shall also indicate whether the auditor satisfies the criteria provided in section 141.
• The company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within fifteen days of the meeting in which the auditor is appointed.
• The “appointment” includes reappointment.