Partner as well ad managing director
This query is : Resolved
29 September 2011
can a person who is partner in an LLP firm can he be the managing director of an private ltd co.and can the same firm do the audit of the co. in which he is the managing director.
30 September 2011
I am assuming that the person is a CA and he is a partner in a CA firm.(Only a CA firm can carry out audits)
Clause 11 of Part I of the First Schedule to the CA Act prohibits a practicing CA to be a managing or whole time director in any Company.
Clause 4 of Part I of the Second Schedule to the CA Act prohibits a practicing CA to express his opinion on any financial statements of an enterprise in which, inter alia, he is a director.
So, a CA who is a partner in a firm can be a director in a Co, but he cannot me MD or whole time director.
Further, his CA firm cannot conduct the audit of the Co. in which he is a director.
Clause 11 of Part I of the First Schedule to the CA Act prohibits a practicing CA to be a managing or whole time director in any Company.
Clause 4 of Part I of the Second Schedule to the CA Act prohibits a practicing CA to express his opinion on any financial statements of an enterprise in which, inter alia, he is a director.
So, a CA who is a partner in a firm can be a director in a Co, but he cannot me MD or whole time director.
Further, his CA firm cannot conduct the audit of the Co. in which he is a director.
30 September 2011
Agree with Expert.
The firm above is disqualified to do the audit work bcoz it affects the independence of firm adversely due to common person/partner.
Further MDship is a full time job so I would not suggest you to appoint him as MD. However he may be a director.
RG
The firm above is disqualified to do the audit work bcoz it affects the independence of firm adversely due to common person/partner.
Further MDship is a full time job so I would not suggest you to appoint him as MD. However he may be a director.
RG
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
