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(Querist)
02 July 2010 IF A CA WITH COP HOLDING ANY SECURITY OF A COMPANY (LIKE EQUITY SHARES) CANT B AUDITOR OF THAT COMPANY AS IN EQUITY THEY HV VOTING RIGHTS $ HV PERSONAL INTEREST IN THAT.
BUT IN CASE OF PREFERENCE SHAREHOLDING CAN TAT CA B AUDITOR OF THAT COMPANY? REASON?
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Shudhanshu Agrawal

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Shudhanshu Agrawal (Expert)
02 July 2010 As per Section 226 an auditor is disqualified if he is holding the secutrities of the company which carry the voting rights. So if the preference shares carry any voting rights and CA is having preference shares then also he will be disqualified.
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