Compliance certificate

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This query is : Resolved

Jyoti Pandey (Querist)

01 October 2013 Can a PCS firm which has borrowed sums from a Company be appointed for issue of Compliance Certificate to the same company?

Kindly Reply as early as possible.

Thanks & Regards

Jyoti

Ajay Mishra

Ajay Mishra (Expert)

01 October 2013 Hi

Disqualifications for appointment of CSP
To ensure that CSP shows utmost integrity and independence of judgment in the performance of his duties, a person referred to in sub-section (3) or sub-section (4) of section 226 of the Act, should not be appointed or re-appointed for giving compliance certificate to a company.
Therefore, the following persons should not be appointed by a company:—
(a) a body corporate;
(b) an officer or employee of the company;
(c) a person who is a partner, or who is in the employment, of an officer or employee of the company;
(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees;
(e) a person holding any security of that company which carries voting rights.
However, any securities held by such person as nominee or trustee for any third person and in which the holder has no beneficial interest should be excluded from such disqualification.

Further, if a person is not qualified for appointment as CSP of a company for reasons stated above, then he is also disqualified for appointment as CSP of any other body corporate which is that company's subsidiary or holding company or a subsidiary of that company's holding company.

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