MCA direct ICAI to withdraw notification on applicability of auditor rotation

ANNOUNCEMENT

Withdrawal of the Announcement regarding Clarification on Applicability of Rotation principles on a company as per Section 139 of the Companies Act 2013 where the company ceases to fall under the ambit of Rotation principles in subsequent years.

The Corporate Laws & Corporate Governance Committee had issued the announcement regarding clarification on the applicability of Rotation principles on a company as per Section 139 of the Companies Act 2013 where the company ceases to fall under the ambit of Rotation principles in subsequent years on 29th January, 2019

The aforesaid Announcement is withdrawn and it shall not be taken in to effect.

(Rakesh Sehgal)

Acting Secretary

F.No. 01/33/2013-CL.V (Pt.)

Government of India

Ministry of Corporate Affairs

5th Floor, A Wing, Shastri Bhawan,

Dr. Rajendra Prasad Road, New Delhi - 110001

Dated: 15th February, 2019

To,

The President, 

Institute of Chartered Accountants of India, 

ICAI Bhawan, 

Post Box No. 7112, 

Indraprastha Marg, 

New Delhi-110002.

Sub:- ICAI's announcement regarding clarification on Applicability of Rotation principles on a company as per Section 139 of the Companies Act, 2013-Reg 

Sir, 

I am directed to refer to subject cited above and to state that ICAI has issued an announcement regarding clarification on Applicability of Rotation principles on a company as per Section 139 of the Companies Act, 2013, where the company ceases to fall under the ambit of Rotation principles in subsequent years. In this connection, it is stated that the issuance of any clarification on different provisions of Companies Act falls in the domain of this Ministry, and ICAI is neither empowered nor competent to issue such clarification and especially so without prior consultation with this Ministry.

2. In view of above, you are requested to immediately withdraw the said announcement & intimate this Ministry the reasons for issuing such announcement without any authority & without the specific approval of this Ministry. 

3. This issues with the approval of competent authority. 

Yours faithfully, 

(Atma Sah) Deputy Director Tel:- 23386065 

Copy to:-

i. CA. Debashis Mitra, Chairman, Corporate Laws & Corporate Governance Committee Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7112, Indraprastha Marg, New Delhi-110002.

ii. The Secretary, Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7112, Indraprastha Marg, New Delhi-110002.