Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

eligiblity for an auditor

Rahul jha (Student) (13 Points)

07 July 2016

A person is a CA and he is a director in company.. So whether he is eligible for appointment as auditor in its holding company

Reply
Follow
Share

4 Replies

(Guest)

Dear Rahul,

Director is not eligible to be appointed as an Auditor. Since he is already holding the position of director in the same company [ Sec. 141(1) & (2) of CA 2013 ].

Upgrade to CAclubindia Pro. Subscribe Now!

Rahul jha (Student) (13 Points)
Replied 07 July 2016

Dear sonu,

Sec. 141(1)&(2) doesnt say that a person holding the position of director in its subsidiary or holding company.

However sec 141(3)(b) says that an officer or employee of the company can't be the auditor of the co.

Bt my problem is, whether it is applicable also in the case of subsi- holding companies?

(Guest)

Brother Rahul,

It is also mentioned in Sec 141(3) read with Rule 10 that A Person who himself or his relative/partner is holding any security or Interest in the company, or any company which is holding or subsidiary or associate.

Hence, it is also applicable in your case.

I hope this will help

Regards

Sonu Jha