Question related to company audit.

Vivek (Working C.a (finalist)) (225 Points)

17 April 2011  

Question related to company audit.

Member of a Company A LTD appointed an auditor named Ram in General meeting by passing ordinary resolution. Ram i a relative of 1 of the director(Laxman) of company . During the time of appointment of auditor Laxman was a nominated Director.
Question is whether Ram can act as Auditor of A LTd?
And if not they please specify the valid reason for it.