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APPOINTMENT OF FIRST AUDITOR IN A COMPANY

 
As per section 139(6) the first auditor of the company other than a government company shall be appointed by the Board within 30 days of Incorporation.In case of Board failure,an EGM shall be called within 90 days to appoint the first auditor.The law is silent regarding from when this time limit of 90 days be reckoned,it is better to take a stricter view and interpret that the 90 days limit starts from Incorporation rather than expiry of 30 days. The first auditor shall hold office till the conclusion of the 1st Annual General Meeting. 
 
 
In case of Government Companies the first auditor shall be appointed by the Comptroller and Auditor-General of India within sixty days from the date of registration of the company and in case the  Comptroller and Auditor-General of India does not appoint such auditor within the said period,the Board of Directors of the company shall appoint such auditor within the next thirty days,it shall inform the members of the company who shall appoint such auditor within sixty days at an extraordinary general meeting.
 

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