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    Question

    Where at any Annual General Meeting (AGM), no auditor is

    appointed or re-appointed, what is the legal consequence as per Section 139(10)?
    A The Central Government shall appoint an auditor. Correct Answer Incorrect Answer
    B The existing auditor shall continue to be the auditor of the company. Correct Answer Incorrect Answer
    C The Board of Directors shall fill the vacancy within 30 days. Correct Answer Incorrect Answer
    D The position is deemed to be vacant until a Special General Meeting is called. Correct Answer Incorrect Answer
    E The CAG will intervene for all public and private companies. Correct Answer Incorrect Answer

    Solution

    Section 139 of Companies Act, 2013, deals with the appointment of the auditor including appointment of first auditor, tenure, re-appointment, etc.   Section 139(10) states that existing auditor will continue as auditors of the company in case no appointment/re-appointment has been made at the annual general meeting of the company.    

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