A relative of an auditor has availed a loan of Rs.400,000 from the auditee Company. The auditor himself has given the guarantee for the said loan. Does the auditor attract disqualification under the Companies Act 2013?
Minnoo Rose K (CA) (39 Points)
19 August 2014A relative of an auditor has availed a loan of Rs.400,000 from the auditee Company. The auditor himself has given the guarantee for the said loan. Does the auditor attract disqualification under the Companies Act 2013?
Sarvesh
(student)
(287 Points)
Replied 19 August 2014
Yes he is not a qualifed auditor under Co act.
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.
Minnoo Rose K
(CA)
(39 Points)
Replied 19 August 2014
Thanks for the reply.. but under the new law the limit is not Rs.1000. Can u plz check it out
Sarvesh
(student)
(287 Points)
Replied 20 August 2014
Yaa Sory, According 2 Co act 2013, limit is incresed to Rs 100000/-
I jus checked from institue module for IPCC, which is attached herewith
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
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