Companies Act, 2013 & Corporate Law updates Govt not to exempt unlisted companies from auditor rotation - Business Standard The ministry of corporate affairs (MCA) has ruled out exempting unlisted companies from auditor rotation, which has been made compulsory in the Companies Act, 2013. The same applies to companies who have not taken any debt from the market. “We do not have any plans to exempt these companies from this provision,” said an MCA official, who did not wish to be named. According to the new Companies Act, the companies shall not appoint an auditor for more than a time period of five years. Similarly, the auditor firm shall not be hired for more than two consecutive periods – each up to five years. According to professionals, the provision for auditor rotation for private companies does not make any sense. The government has also decided not to increase the time period – which is 5 years for the auditor, 10 years for the firm.
Posted on: Fri, 26 Dec 2014 12:26:52 +0000
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