Question
As per the Companies Act persons not eligible for
appointment as an auditor of a company are ___________Solution
Explanation: Section 141.Eligibility, qualifications and disqualifications of auditors: (3) None of the following persons shall be eligible for appointment as an auditor of a company, namely:ā (a)Ā a body corporate; (b)Ā anĀ officer or employee of the company; (c)Ā a person who is a partner, or who is in the employment, of an officer or employee of the company; (d)Ā a person who, or his relative or partnerā (i)Ā is holding any security of the company or its subsidiary , or of its holding or associate company or a subsidiary of such holding company , of value in terms of such percentage as may be prescribed; (ii)Ā is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company; or (iii)Ā has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, for such amount as may be prescribed; (e)Ā a person or a firm who has business relationship with the company, or its subsidiary, or its holding or associate company or subsidiary of such holding company or associate company of such nature as may be prescribed; (f)Ā a person whose relative is in the employment of the company as aĀ director or key managerial personnel; (g) a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies other than one person companies, dormant companies, small companies and private companies having paid-up share capital less than one hundred crore rupees; (h) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction; (i) a person who, directly or indirectly, renders any service referred to in section 144 to the company or its holding company or its subsidiary company.
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