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Mr. Guru is a relative of Mrs. Riya (chartered Accountant), has given guarantee of indebtedness of Rs. 5, 00,100 in M/s ABC Ltd. which is an associate company of M/s XYZ Ltd. Whether Mrs. Riya is eligible to appoint as auditor in M/s XYZ Ltd.?
Yes
No
Partly Yes
Partly No
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.
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