Which one of the following statements is not correct ........

Companies Act-Phase (I & II) Board-powersandMeetings

Which one of the following statements is not correct?

It is a criminal offence for anyone to knowingly or recklessly give an auditor misleading, false or deceptive information.

Section 180 of the Act, inter alia, requires that a company cannot borrow in excess of its paid-up capital & free reserve unless it is approved by special resolution. Section 180 does not exempt a private company.

The auditor cannot be an officer or employee of the company or in partnership with someone who is an officer or employee of the company.

An Auditor cannot be removed before the expiry of his term of office.

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Explanation:

To remove an auditor before the expiry of his term of office the shareholders must pass an ordinary resolution with special notice (28 days) at a meeting.

By: Srishti Gupta

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Rinki Goswami

can you tell how did you write companies act 2006? Does the question framer know what he/she is copy pasting?

Abhishek Raj

There is a discrepancy in the option B;should be companies act 2013 and also the explanation given is wrong since for the removal of an auditor appointed under section 139;Special resolution needs to be passed in the general meeting of the Company and also the previous approval of the Central government is also required;as per section 140

Abhishek Raj

There is a discrepancy in the option B;should be companies act 2013

Abhishek Raj

There is a discrepancy in the option B;should be companies act 2013