Disqualification of Auditor

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santosh (Querist)
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04 October 2010 accor to sec 226 of the companies act if and auditor holds shares in the company in which he is proposed to be appointed after one year of the companies amendment act 2000 he is disqualified for appointing as an auditor and also he is disqualified to be appointed if he holds the shares of voting rights

Now my question is whether the auditor is not disqualified if he holds shares in the company before the companies amendment act and also if he holds shares of non voting rights he is not disqualified?
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Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 October 2010 Half knowledge is dangerous.

The section reads as under:
226) 3) 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.

So he would be disqualified only in any case.