Mr. Ram is a relative of Mr. Shyam (chartered Accountant), in a partnership firm, is indebted of Rs. 4, 50,000 in M/s ABC Ltd. Whether Mr. Shyam is eligible to appoint as auditor in M/s ABC Ltd.?

Section 141(3) (d) of the Companies Act, 2013, a person who, or his relative or partner is indebted to the company or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of Rs. 5,00,000 shall not eligible for appointment as an auditor of a company.

By: Srishti Gupta