[To be published in the Gazette of India, Extraordinary, Part ll, section 3, sub-section

(ii)l
Government of India
Ministry of Corporate Affairs

ORDER
New Delhi, the 3 s4 June, 2016.

S.O. _ (E). - Whereas, the Companies Act, 2013 (18 of 2013) (hereinafter referred to as
the said Act) received the assent of the President on 29th August, 2013 and section 1

thereof came into force on the same date;

And, whereas, the provisions contained in section 139, which provides for appointment
of auditors has come into force on the 1st April, 2014;

And, whereas, sub-section (2) of section 139 of the said Act provides that no listed
company and the prescribed class of companies shall appoint or re-appoint-
(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;

And, whereas, first proviso to sub-section (2) provides for period for which the individual
auditor or audit firm who or which have completed term provided under such sub-section
shall not be eligible for re-appointment as auditor in the same company;

And, whereas, the third proviso to sub-section (2) provides that every company, existing
on or before the commencement of this Act which is required to comply with provisions
of sub-section (2) shall comply with the requirements of such sub-section within three
years from the date of commencement of the said Act;

And, whereas, as per provisions of sub-section (1) of section 1 39, the companies are
required to appoint auditor at the annual general meeting who shall hold office from the
conclusion of that meeting till the conclusion of sixth annual general meeting;
And, whereas, difficulties have arisen regarding compliance with the provisions of third
proviso to sub-section (2) of section 1 39 in so far as they relate to the period within which
companies would comply with provisions of sub-section (2) of section 139 of the said Act;

Now, therefore, in exercise of the powers conferred by sub-section ('l) of section 470 of
the companies Act, 2013 (18 of 2013), the central Government hereby makes the
following Order to remove the above said difficulties, namely:-

1 . Short title and commencement.- (1) This Order may be called the Companies (Removal
of Difficulties) Third Order, 2016.

(2) lt shall be deemed to have come into force from lstApril, 2014.

2. In the Companies Act, 2013, in section '139, in sub-section (2), for the third proviso, the
following proviso shall be substituted, namely:-

"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, shall comply with
requirements 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.".

[F. No. 1/33/2013-CL-Vj

(Amardeep Sirlgh Bhatia)

Joint Secretary to the Government of India
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