CAN A RELATIVE OF A DIRECTER BE APPINTED AS A AUDITOR OF THE COMPANY??
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 09 October 2013
Hi,
Pls go through section 141 of the new Companies Act 2013 which states conditions for eligibility of an auditor. According to this section, a relative of a director cannot be appointed as an auditor...
Though the said section has not yet come into force, it will be effective latest by 1/4/14. So it is advisable not to appoint such a person as an auditor.
Hopefully your query is resolved...if not revert here...
Regards
Bhargav teja
(CA-FINAL Student & Article Trainee)
(153 Points)
Replied 12 November 2013
According to Sec.226 of Companies act, 1956 he is disqualified to be appointed as an Auditor. The same provision as regards to Companies act 2013
For your Reference:-
None of the following persons shall be qualified for appointment as auditor of a company-
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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