Certain category of persons not qualified for appointment as auditor:
Section 226(3) states that 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 i.e. 13th December, 2000; (f) For the purposes of section 226, "security" means an instrument, which carries voting rights; (g) a person if he is, by virtue of section 226(3), disqualified for appointment as auditor of any other body corporate which is that company's subsidiary or holding company or subsidiary of that company's holding company. [Section 226(4)]
Yes, such person is not fall under above mentioned category, so he will be eligible to appoint as Statutory Auditor of the Company.
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