Section 141

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 There are two private cos A Pvt. Ltd. and B Pvt.Ltd.
B Pvt. Ltd. holds 48% of shares of A Pvt. Ltd.
Director of B Pvt. Ltd. is a partner of audit firm of A Pvt. Ltd.(i.e. h is auditor of A Pvt. Ltd.)

Is there any violation of Section 141 of Companies Act 2013?

Kindly reply.

Ankur Garg

Ankur Garg (Expert)
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06 July 2015 As per my opinion H is not disqualified to be appointed as Auditor under section 141(3) of CA 2013.

However this kind of appointment should be avoided to avoid conflict of interest and protect independence of auditor.

Thanks