Company law - regarding statutory auditor of a company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2014 i have a doubt that , can wife of a statutory auditor of a company can be a shareholder in the same company .

if yes ; how ?
if no ; what are the consequences that stat auditor has to face.

any action taken by ICAI , in subject to this maters.

plz reply , thanks in advance .

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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09 December 2014 Section 141 (3) of the Act read with Rule 10 prescribed the persons shall not be eligible for appointment as an auditor of a company if a person whose relative is holding security or interest not exceeding Rs. one Lac face value in the company, or any company which is its holding, subsidiary, associate

Provided further that in the event of acquiring any security or interest by a relative, above the threshold limit i.e. Rs. one lac, the corrective action to maintain the limits (Rs. one lac) shall be taken by the auditor within 60 days of such acquisition or interest

According to section 141 (4) where a person appointed as an auditor of a company incurs disqualifications mentioned as above after his appointment, he shall vacate his office as such auditor and such vacation shall be deemed to be a casual vacancy in the office
of the auditor.

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