02 August 2010
section 314 prohibits appointment of a relative of director to an office of profit. The word ‘relative’ has been defined in section 6 as listed in Schedule I-A.
Meaning of “relative” 6. A person shall be deemed to be a relative of another if, and only if,- (a) they are members of a Hindu undivided family; or (b) they are husband and wife; or (c) the one is related to the other in the manner indicated in Schedule IA. SCHEDULE IA LIST OF RELATIVES 1. Father 2. Mother (including step-mother) 3. Son (including step-son) 4. Son’s wife 5. Daughter (including step-daughter) 6. Father’s father 7. Father’s mother 8. Mother’s mother 9. Mother’s father 10. Son’s son 11. Son’s son’s wife 12. Son’s daughter 13. Son’s daughter’s husband 14. Daughter’s husband 15. Daughter’s son 16. Daughter’s son’s wife 17. Daughter’s daughter 18. Daughter’s daughter’s husband 19. Brother (including step-brother) 20. Brother’s wife 21. Sister (including step sister) 22. Sister’s husband
02 August 2010
No this position should be avoided. I mean in your case BS signing by auditor is not at all advisable keeping in view the provisions of independence of auditor.
CAclubindia
