Mr Kiran is a partner of Mr Rajesh chartered Accountant in a partnership firm is holding shares of R...........

Companies Act-Phase (I & II) Audit and auditors

Mr. Kiran is a partner of Mr. Rajesh (chartered Accountant), in a partnership firm, is holding shares of Rs. 50,000 in M/s ABC Ltd. which is a subsidiary of M/s XYZ Ltd. Whether Mr. Rajesh is eligible to appoint as auditor in M/s XYZ Ltd.?

Yes

Partly Yes

Partly No

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Explanation:

Section 141(3) (d) of the Companies Act, 2013, a person who, or his relative or partner is holding any security of or interest in the company or its subsidiary or of its holding or associate company or a subsidiary of such holding company shall not eligible for appointment as an auditor of a company. Provided that the relative may hold security or interest in the company of face value such sum as may be prescribed i.e. Rs. 1, 00,000.