Section 141(3) disqualification of auditor

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Shivam Tiwari (Querist)

18 May 2016 If a person is an non executive director of the company then can he be appointed as an auditor of that company since there is no provision in sec 141(3) regarding disqualification of director from acting as an auditor since non executive director is not in the employment of the company
Wheather he can act as an auditor of the company plz give explanation regarding my query thank you

Jatin Bajaj

Jatin Bajaj (Expert)

18 May 2016 Kindly refer Section 149(6)(e) of Companies Act 2013, which talks about Independent Director, i.e. Non Executive Director
According to this clause the non executive Director or any of his relative shall not be the employee, or proprietor or partner in any of the three financial year immediately preceding the financial year in which he is proposed to be appointed of
(A)- a firm of auditors or Company Secretaries in Practice or Cost auditor of the Company or of its holding Company, Subsidiary Company or associate Company.

Mandar

Mandar (Expert)

18 May 2016 With reference to Section 141(3)(d)(I) wherein it is stated the person shall not be an Auditor of Company if the person holds "Interest in the Company" , so as per my view the person being a non executive director would attend Board Meeting and would be eligible for "Director Fees" or "eligible for commission on net profit". Thus makes him interested in the Company.

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