Under the Companies Act, 2013, the first auditor of a

Q: Answer-Under the Companies Act, 2013, the first auditor of a company is appointed by:

According to Section 1396 of the Companies Act, 2013, the Board of Directors of a newly incorporated company shall appoint the first auditor within 30 days of its incorporation. If the Board fails to do so, the members shall appoint the auditor within the next 90 days at an Extraordinary General Meeting EGM.

company is appointed by:

A The Board of Directors within 30 days of incorporation Correct Answer Incorrect Answer

B The members in the first Annual General Meeting (AGM) Correct Answer Incorrect Answer

C The Registrar of Companies Correct Answer Incorrect Answer

D The Central Government Correct Answer Incorrect Answer

Solution

According to Section 139(6) of the Companies Act, 2013, the Board of Directors of a newly incorporated company shall appoint the first auditor within 30 days of its incorporation. If the Board fails to do so, the members shall appoint the auditor within the next 90 days at an Extraordinary General Meeting (EGM).

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