DISQUALIFICATIONS OF AUDITOR company law 2013 notes


Posted on 04-05-2016        By ADMIN

DISQUALIFICATIONS OF AUDITOR Section 141 (3) of the Act read with Rule 10 prescribed the following perso ns shall not be eligible for app ointment as an auditor of a company, namely: • A body corporate, except LLP; • An off icer or employee of the company; • Any partner/employee of officer or employee of company; • A person wh o himself or his relative/partner is holding any security or interest in the company, or any company wh ich is its holding, subsidiary, associate; • A person wh ose relative is holding security or interest not exceeding Rs. one Lac face value in companies as mentioned above. Provided that this condition be also applicable in the case of a company not having share capital or other securities, COMPANIES ACT, 2013 wherever relevant. • A person who or whose relative or partner is indebted to the company or its subsidiary or its holding or associate company or a subsidiary of such holding company, in excess of rupee s five lakh shall not be eligible for app ointment; • A person wh o or whos e relative or partner has given a guarantee or provided any security in conn ection with the indebtedness of any third perso n to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of one lak h rupees shall not be eligible for appointment;


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