section 141:
Provided also that the company shall inform the auditor concerned of his or its appointment, and also
file a notice of such appointment with the Registrar within fifteen days of the mee ting in which the auditor
is appointed.
Explanation. -For the purposes of this Chapter, “appointment ” includes re -appointment.
(2)No listed company or a company belonging to such class or classes of companies as may be
prescribed, shall appoint or re -appoi nt- (a)an individual as auditor for more than one term of five consecutive years; and (b)an audit firm as auditor for more than two terms of five consecutive years:
Provided that - (i)an individual auditor who has completed his term under clause ( a) shal l not be eligible for
re-appointment as auditor in the same company for five years from the completion of his term; (ii)an audit firm which has completed its term under clause ( b), shall not be eligible for
re-appointment as auditor in the same company for five years from the completion of such term:
Provided further that as on the date of appointment no audit firm having a common partner or partners
to the other audit firm, whose tenure has expired in a company immediately preceding the financial year,
shall be appointed as auditor of the same company for a period of five years:
1[Provided also that every company, existing on or before the commencement of this Act which is
required to comply with the provisions of this sub -section, s hall comply with requirement of this
sub-section within a period which shall not be later than the date of the first annual general meeting of the
company held, within the period specified under sub -section ( 1) of section 96, after three years from the
date of commencement of this Act:]
Provided also that, nothing contained in this sub -section shall prejudice the right of the company to
remove an auditor or the right of the auditor to resign from such office of the company. (3)Subje ct to the provisions of this Act, members of a company may resolve to provide that - (a)in the audit firm appointed by it, the auditing partner and his team shall be rotated at such
intervals as may be resolved by members; or (b)the audit shall be conduct ed by more than one auditor. (4)The Central Government may, by rules, prescribe the manner in which the companies shall rotate
their auditors in pursuance of sub -section ( 2).
Explanation .-For the purposes of this Chapter, the word “firm” shall include a l imited liability
partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009). (5)Notwithstanding anything contained in sub -section ( 1), in the case of a Government company or
any other company owned or controlled, directly or in directly, by the Central Government, or by any State
Government or Governments, or partly by the Central Government and partly by one or more State
Governments, the Comptroller and Auditor -General of India shall, in respect of a financial year, appoint an
auditor duly qualified to be appointed as an auditor of companies under this Act, within a period of one
hundred and eighty days from the commencement of the financial year, who shall hold office till the
conclusion of the annual general meeting. (6)Notwi thstanding anything contained in sub -section ( 1), the first auditor of a company, other than a
Government company, shall be appointed by the Board of Directors within thirty days from the date of
registration of the company and in the case of failure of th e Board to appoint such auditor, it shall inform
the members of the company, who shall within ninety days at an extraordinary general meeting appoint
such auditor and such auditor shall hold office till the conclusion of the first annual general meeting.