The board of directors shall appoints first auditor of a company___________.

Within one month of completion of capital subscription by the company

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Within one month of the promotion of the company

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Within one month of the commencement of the business of the company

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Within one month of incorporation of the company

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Solution

The correct option is D Within one month of incorporation of the company
Appointment of First Auditors: Section $139 (6)$ of the Companies Act, $2013$ provides that the first auditor or auditors are to be appointed by the Board of directors within $30$ days from the date of the registration of the company These auditors will work until the conclusion of the First Annual general meeting.

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Stages in the formation of a public company are in the following manner

(a) Promotion, Commencement of business, Incorporation, Capital Subscription

(b) Incorporation, Capital Subscription, Commencement of business, promotion

(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

(a) Promotion, Commencement of Business, Capital

(d) Capital Subscription, Promotion, Incorporation,

Preliminary Contracts are signed

(a) before the incorporation

(b) after incorporation but before capital subscription

(d) after commencement of business

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