Rotation of auditors
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 May 2017
Can a relative of a statutory auditor be appointed as the next statutory auditor in the case of rotation??
Please also quote the sections.
Please also quote the sections.
CS Mitesh Mehta
(Expert)
01 June 2017
Yes. Subject to the fulfillment of following conditions
1. Relative is not holding any security of or interest in company; or its subsidiary; or its holding company; or associate company; or subs. of such holding co. Relative of an auditor may hold securities in the Co. of face value < Rs. 1 Lakh.
2. Relative has not indebted to company; or its subsidiary; or its holding company; or associate company; or subs. of such holding co.. for more than Rs. 5 Lakhs
3. Relative has not given a guarantee or security for indebtedness of any third person to company; or its subsidiary; or . its holding company; or associate company; or subs. of such holding co in excess of Rs. 1 Lakh
(Section 141 (3) of the Act read with Rule 10)
1. Relative is not holding any security of or interest in company; or its subsidiary; or its holding company; or associate company; or subs. of such holding co. Relative of an auditor may hold securities in the Co. of face value < Rs. 1 Lakh.
2. Relative has not indebted to company; or its subsidiary; or its holding company; or associate company; or subs. of such holding co.. for more than Rs. 5 Lakhs
3. Relative has not given a guarantee or security for indebtedness of any third person to company; or its subsidiary; or . its holding company; or associate company; or subs. of such holding co in excess of Rs. 1 Lakh
(Section 141 (3) of the Act read with Rule 10)
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