• Deepak Sharma

Auditor of Nidhi Limited: Appointment and Tenure

Auditor Appointment of Nidhi Company:

Appointment of auditor in Nidhi Company shall be done as per section of 139 of Companies Act, 2013.

Appointment of first auditor:

  • The first auditor of a company shall be appointed by the Board of Directors within thirty days from the date of registration of the company.

  • If Board failed 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.

  • First auditor shall hold office till the conclusion of the first annual general meeting.

Subsequent appointment of auditor:

  • Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting

  • Before such appointment is made, the written consent of the auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor.

  • Auditor shall also provide in certificate that he fulfil the eligibility criteria for appointment as auditor as prescribed under section 141.

  • 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 meeting in which the auditor is appointed.

Rule 19 of Nidhi Rules, 2014 for Auditor appointment and tenure:


(1) No Nidhi shall appoint or re-appoint an individual as auditor for more than one term of five consecutive years.

(2) No Nidhi shall appoint or re-appoint an audit firm as auditor for more than two terms of five consecutive years;

Provided that an auditor (whether an individual or an audit firm) shall be eligible for subsequent appointment after the expiration of two years from the completion of his or its term.

Explanation: For the purposes of this proviso:

(i) in case of an auditor (whether an individual or audit firm), the period for which he or it has been holding office as auditor prior to the commencement of these rules shall be taken into account in calculating the period of five consecutive years or ten consecutive years, as the case may be;

(ii) appointment includes re-appointment.


All other provisions of Companis Act, 2013 and rules will be applicable asapplied on other limited company.

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Tags: How to appoint an auditor in Nidhi Company, Appointment of auditor in Nidhi Company, How to appoint a auditor in Nidhi, Tenure of auditor of a Nidhi company, how to appoint first auditor in Nidhi Company


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