ICAI withdraws announcement on auditor rotation after MCA directive

ICAI withdraws announcement on auditor rotation after MCA directive ICAI has withdrawn the announcement regarding applicability of rotation

CA Deepak Gupta

Feb 15, 2019

Last update on Feb 15, 2019

ICAI withdraws announcement on auditor rotation after MCA directive

ICAI has withdrawn the announcement regarding applicability of rotation of auditors at companies, following the directive from the Ministry of corporate affairs (MCA).

In a rare instance, the ministry told the Institute of Chartered Accountants of India (ICAI) to "immediately withdraw" the announcement and also provide reasons for making such an announcement, according to a letter.

ICAI withdraws announcement on auditor rotation after MCA directive

Below is the MCA announcement directing ICAI to withdraw announcement on auditor rotation

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

Below is the ICAI announcement withdrawing 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 after MCA directive

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

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