Appointment of statutory auditor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2012 Dear Sir,

Whether Director's relative who is CA can appoint as statutory auditor of that Company?

Request to you please provided me list of disqualification for appointment of CA as Statutory Auditor.

Thanking you,

With Best Regards,
Digesh Shah

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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13 July 2012 According to Section 226(3) of the Companies Act, 1956, None of the following persons shall be qualified for appointment as auditor of a company—

(a) a body corporate;

(b) an officer or employee of the company;

(c) a person who is a partner, or who is in the employment, of an officer or employee of the company;

(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees;

(e) a person holding any security of that company after a period of one year from the date of commencement of the Companies (Amendment) Act, 2000.

Explanation.—For the purpose of this section, “security” means an instrument which carries voting rights.