How can an Auditor report a disqualification of a director in the Audit Report?

CS Divesh Goyal | Last updated: 04 August 2021

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Auditors have a legal duty to report if any director is disqualified from their position. This is mandated by Section 143(3)(g) of the Companies Act, 2013. To fulfil this, auditors must first obtain a DIR-8 declaration from directors and then verify their directorship status and company filings on the MCA website. If a director is found to be disqualified, the auditor must specifically state the director's name, the date and reason for disqualification in the audit report.

Short Summary How Do you know a director is disqualified? Section 164(2) provide conditions for the disqualification of the director. A director can be disqualified under Section 164 of the Companies Act, 2013 for the following reasons: The Director is of unsound mind and stands so

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About the Author

CS Divesh Goyal

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

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