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Relative of Director as an Auditor of the company

Postby amit_ydv » Sat Feb 16, 2008 2:40 pm

Dear professional Colleagues

I want to seek your views on the appointment of auditor who is a relative of director(s) of the company. Section 226 doesn’t disqualify a relative to be appointed as an auditor of the company.

Don’t you think that it is against the spirit of the law and not in the interest of stakeholders?

Kindly share your views with me
AMIT YADAV
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Re: Relative of Director as an Auditor of the company

Postby pratap rudra » Sat Feb 16, 2008 10:58 pm

Dear Mr. Yadav,

Appointing a person as auditor who is a relative of director will attract Section 314 (office or place of profit). Requires the fulfillment of this section.

Thanks, Pratap
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Re: Relative of Director as an Auditor of the company

Postby snswamyfcs1956 » Mon Feb 18, 2008 5:58 am

Dear professional friend

it is not only the 314, regulation, that attracts,
the CA institute , guidelines, does not permit such appoints at all, it attracts professinal misconduct as well. lot of disclosure requirements also to be given in this type of arrangements.

so , the rules have already been in force.

s.narayanaswamy
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Re: Relative of Director as an Auditor of the company

Postby amit_ydv » Mon Feb 18, 2008 10:35 am

Dear Mr. Narayanaswamy

Can you please elaborate a bit about the norms u are referring or provide me the source( name of the rules or some weblink etc) from where i can refer them.

I would be highly obliged
AMIT YADAV
SHIP IS ALWAYS SAFE AT THE SHORE.. BUT THAT IS NOT WHAT IT IS BUILT FOR..
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Re: Relative of Director as an Auditor of the company

Postby snswamyfcs1956 » Mon Feb 18, 2008 10:51 am

pl visit, CA institute site.

the details are available in the same

s.narayanaswamy
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