Appointment of Auditor

This query is : Resolved

Life is a Race.....CA FINAL (Querist)
Follow

04 February 2010 In one of the private limited company following situation arise:

One of the director possess 15% equity shares. Now his mother who is chartered accountant wants to accept the appointment as auditor of the Pvt. ltd. co.

Can she accept?

Ankur Garg

Ankur Garg (Expert)
Follow

04 February 2010 No she cannot accept the appointment as her position may adversely affect her independence as statutory auditor.

Being a relative of director she should not accept. ICAI is also of the same view.

Regards

Jagruti (CS)

Jagruti (CS) (Expert)
Follow

04 February 2010 Companies Act do not prohibit appointment of relative of Director. For the purpose you have to take special resolution for his appoint as it will attract Section 314 i.e. holding of office or place of profit if remuneration of auditor is 10000 per month or more.

And central govt approval if it is 20000 or more per month.

However it is advisable that relative should not be appointed as Independence is likely to be affected

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhananjay Singh

Hmr Babu

Mikilesh Shah

CA Jyoti Singh

Phani

Subscribe Now

Appointment of Auditor

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

Manager- Finance and Compliance

GST CONSULTANCY

GST CONSULTANT

CA Final

Accountant