Appointment of director

459 views
User Avatar

Article
43 Points Posted on 28 November 2013
can auditor of holding co become director of subsidiary co.?
1 Reply Share Follow
On 28 November 2013 at 16:23 Report
Replies (9)
User Avatar

JOB
901 Points Posted on 28 November 2013

A person shall also not be qualified for appointment as auditor of a company if he is, by virtue of sub- section (3), disqualified for appointment as auditor of any other body corporate which is that company' s subsidiary or holding company or a subsidiary of that company' s holding company, or would be so disqualified if the body corporate were a company

In my simple term = If person is disqualified as a auditor in holding/ subsidiary company than he is also disqualified as a auditor for holding/subsidiary company also..!

Got it ?

1 Reply
On 28 November 2013 at 18:41
User Avatar

JOB
901 Points Posted on 28 November 2013

sec. 226 of companies act 1956 

Reply
On 28 November 2013 at 18:43
User Avatar

Article
43 Points Posted on 29 November 2013
Yup i know but still litl bit confusion is there that first he became auditor of holding co. Nd now can he apply as director for subsidiary co. Or independence
1 Reply
On 29 November 2013 at 12:21
User Avatar

Article
43 Points Posted on 29 November 2013
Is indepndc affctd or not?
Reply
On 29 November 2013 at 12:22
User Avatar

Article Assistant
26 Points Posted on 29 November 2013

Disqualification attracted to the auditor, he should resign as an auditor.

Reply
On 29 November 2013 at 13:37
User Avatar

Article
43 Points Posted on 29 November 2013
As per which clause or sec?
Reply
On 29 November 2013 at 13:44
User Avatar

JOB
901 Points Posted on 29 November 2013

Dear Megha, He can not be auditor for holding & director for subsidiary.

For Sec. 226, holding company & Subsidiary company considered as a one company. So He can not be auditor & director of same company..

 

1 Reply
On 29 November 2013 at 13:45
User Avatar

Article
43 Points Posted on 29 November 2013
Bcoz clause 9 only states that auditor of the company cant become director of same co.
1 Reply
On 29 November 2013 at 13:46
User Avatar

Article
43 Points Posted on 29 November 2013
Ohk thanx
Reply
On 29 November 2013 at 13:48

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. CA Fees deduction for non audit case allowed?
  2. 5th Letter PAN Mismatch with Surname issues still
  3. Criteria to hire an article
  4. Guidence requested for a Finance Professional with
  5. Expert Opinion Required – Form 140 Gross Amo
  6. WRONG TAX DEMAND - formal responses , rectificatio
  7. Foreign remittance
  8. Affordable Residential Flats in Gurgaon
  9. Manufacturing
  10. TAN REGISTRATION ON E-FILLING SITE

More recent discussions | Post

Related Topics :

Loading