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My question is Suppose some person want to start a company named ABCD consultancy and services pvt ltd in india (ABCD Group is reputed one).So because of their reputation they procure many big big clients.Director,MD Is CA but neither in practice nor in service.There are small 4 ca firm that A& CO, B& CO, C& CO, D& CO. Company give works to all 4 CA firm by a agreement of 30% of professional fees. (1) Can it be possible in india? (2) Is the company violated company act? (3) Will any of section of of CA act appllies to company? (4) Will 4 CA firm will be guity for this?

Need Early and positive reply.

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Studentsca

CA Practice

3577 Points Posted on 26 January 2017

1. Appointment of more than 1 CA for a company is allowed. The 4 CA firms will be appointed as Joint Auditors. This usually happens in case of listed companies and large MNC's due to the sheer volume of work involved.

2. If the appointment procedure provided U/S 139 r.w.s. 141 of the Companies Act 2013 is followed then no question of violation.

3. Read the CA act to get answer for your 3rd query.

4. CA will not be guilty of misconduct merely bybeing appointed as Joint Auditors.