Company law

Chapter – 7  Disqualifications under section 226

Note: 

1. If a relative or partner of the auditor holds substantial interest in the business of the client, the auditor should not accept the appointment as per the latest amendment to the Code of Ethics. Before the amendment the auditor was required to disclose the substantial interest in his report. After the amendment the auditor cannot make such disclosure.

2. If the auditor of a company is a relative of the director, then the appointment of the auditor requires special resolution under section 314 of the Companies Act, 1956

Regards,

Aditya