CA Inter P5 · Chapter 11 · Question 13 of 13
The statutory auditor of Gaurav Industries Ltd., a non-government company, resigns mid-term. Under section 139(8) of the Companies Act, 2013, the resulting casual vacancy:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Is filled by the board within 30 days, and the appointment must be approved by the company at a general meeting convened within three months of the board's recommendation
Explanation
Section 139(8)(i) provides that a casual vacancy in a non-government company is filled by the board within 30 days. Where the vacancy is caused by resignation, the appointment must also be approved by the company at a general meeting convened within three months of the board's recommendation, and the auditor holds office till the conclusion of the next AGM.
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