New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Every company shall, at the first annual general

    meeting, appoint an individual or a firm as an auditor who shall_____________________
    A Hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting Correct Answer Incorrect Answer
    B Hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every fifth meeting Correct Answer Incorrect Answer
    C 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 Correct Answer Incorrect Answer
    D Hold office till the conclusion of its sixth annual general meeting and thereafter till the conclusion of meeting Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Companies Act Section 139.Appointment of auditors: (1) Subject to the provisions of this Chapter, 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 and the manner and procedure of selection of auditors by the member of the company at such meeting shall be such as may be prescribed.

    Practice Next