Company audit-its emergency

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priyam uapdhyay(ca final) (Querist)
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24 February 2014 helo,
my question is that what is the definition of FULL TIME EMPLOYMENT because as per section 224(1B) no company or its bod shall appoint or re appoint any person who is in full time employment elsewhere again my question is that if any individual is in full time employment ELSEWHERE than how can he/she hold certificate of practice and if cop will not be held then the question of "no company or its bod shall appoint or re appoint any person who is in full time employment elsewhere" how can be arised.

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Aditya Agarwal

Aditya Agarwal (Expert)
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24 February 2014 Dear Priyam,

There can be two instances by the virtue of which a person can hold COP in full time employment:-

1)The person can hold cop in a wrongful manner and thus not eligible for COP.

2) There is concept called partial COP which an individual can hold while being in employment, but it has limited scope and restriction.

Thus a person in whole time employment cannot appointed as an auditor u/s 224(1B)

priyam uapdhyay(ca final)

priyam uapdhyay(ca final) (Querist)
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24 February 2014 thanx sir,
but i want to know the exact definition of FULL TIME EMPLOYMENT as per companies act 1956

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Aditya Agarwal

Aditya Agarwal (Expert)
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24 February 2014 Dear Priyam,

The term Whole Time Employment is a general term and hence not defined in the Companies Act,1956.

Whereas in general parlance one can say that, a person will be in Whole Time Employment where his Income is chargeable U/S 192 of the Income Tax Act.

priyam uapdhyay(ca final)

priyam uapdhyay(ca final) (Querist)
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24 February 2014 thank you sir for reply