Corporate and Other LawsMCQQuestion 12559 of 300
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Under Section 139(2) of the Companies Act, 2013, an individual auditor cannot be appointed or re-appointed in an eligible company for more than:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — One term of 5 consecutive years

All Options:

  • AOne term of 5 consecutive years ✓
  • BTwo terms of 5 consecutive years each
  • COne term of 3 consecutive years
  • DTwo terms of 3 consecutive years each

Detailed Solution & Explanation

Correct Answer: Option **A** (One term of 5 consecutive years) **Statutory Provision (Section 139 - Rotation of Auditors (Individual)):** Section 139(2)(a) stipulates that no listed company or prescribed class of companies shall appoint or re-appoint an individual as auditor for more than one term of five consecutive years. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

Under Section 77(1) of the Companies Act, 2013, within what initial statutory period must a company register a charge created on its property or assets with the Registrar of Companies (ROC)?

Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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