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Mrs. Sonali is a partner of Mr. Rajaram (chartered Accountant), in a partnership firm, has given guarantee of indebtedness of Rs. 99,000 in M/s ABC Ltd. which is an associate company of M/s XYZ Ltd. Whether Mr. Rajaram is eligible to appoint as auditor in M/s XYZ Ltd.?
Section 141(3) (d) of the Companies Act, 2013, a person who, or his relative or partner has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its subsidiary or its holding or associate company or a subsidiary of such holding company, more than Rs. 1, 00,000 shall not eligible for appointment as an auditor of a company.
By: Srishti Gupta ProfileResourcesReport error
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