Disqualifications of Auditors

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c.v.sarma

c.v.sarma (Querist)
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04 October 2007 Can a person holding preference share/s be appointed as the statutory auditor of the company? Please provide reasons for your answer

Ravikumar.G

Ravikumar.G (Expert)
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04 October 2007 In u/s 226(3) Disqualification of Auditors means:

A person holding any securities of the company after a period of one year from the date of commecement of the Companies amendment act, 2000.

SECURITY MEANS AN INSTRUMENT WHICH CARRIES VOTING RIGHTS.

Preference shares is also security, hence he is not eligible to appoint as an auditor.