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Section 39 of The National Dairy Development Board Act, 1987

Any auditor appointed in relation to the society or the dissolved company, functioning immediately before the appointed day, may, notwithstanding anything contained in this Act, be continued by the National Dairy Development Board for such period and on such terms as may be considered necessary.

Summary

This rule allows the Board to keep using the same auditors who worked for the previous dairy organisations before the new law started.
The Board has the freedom to decide how long to keep these old auditors and on what terms they will work.
This exception officially overrides any other rules in the new law that might normally require a different hiring process for auditors.

Practical examples

1On the day the new law takes effect in 1987, an accounting firm that was halfway through auditing the old society's books is simply asked to finish the job under their existing payment terms because of this transitional rule.

2The Board decides to retain an auditor from the dissolved company for an extra two years to ensure a smooth transition of financial records, updating their contract terms to reflect the new timeline.

FAQ

1. What happens to the old auditors under section 39 of The National Dairy Development Board Act, 1987?

Under section 39 of The National Dairy Development Board Act, 1987, any auditor who was working for the old society or dissolved company right before the appointed day can keep working.

2. Can the Board change the terms for the existing auditors according to section 39 of the NDDB Act?

Yes, section 39 of the NDDB Act says the National Dairy Development Board can keep these auditors for as long as they think is needed and on the terms they decide.

3. Does any other rule stop the Board from keeping the old auditors under section 39 of this dairy law?

No. Section 39 of this dairy law states that the Board can keep these auditors despite anything else written in the Act.

Test yourself

Q1.Under Section 39 of The National Dairy Development Board Act, 1987, what happens to auditors who were functioning for the society immediately before the appointed day?

Q2.According to Section 39 of The National Dairy Development Board Act, 1987, who determines the length of time the transitional auditors will remain employed?

Q3.The main law has strict rules for appointing new auditors. How does Section 39 of The National Dairy Development Board Act, 1987 protect the old auditors from these strict new rules?

Q4.Under Section 39 of The National Dairy Development Board Act, 1987, what terms govern the continued work of the transitional auditors?

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