Appointment of director

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 ?

sec. 226 of companies act 1956 

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

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..