Question

If shareholders cannot appoint the auditors in General Meeting, then who will appoint the auditors?

• A. Central Government
• B. Directors
• C. Both (a) and (b)
• D. None of the above

Answer 1

The correct option is A Central Government

If shareholders cannot appoint the auditors in General Meeting, then the Central Government may appoint a person to fill the vacancy under Section $139$. The company is required to give within one week notice to the Central Government that the power has become exercisable.