What is the Eligibility, qualifications and disqualifications of auditors How to fix Remuneration of auditors Section 141 and 142 of Indian Companies Act 2013
Eligibility, qualifications and disqualifications of auditors and Remuneration of auditors are defined under Section 141 and 142 of Indian Companies Act 2013. Provisions under these sections are:
Section 141 of Indian Companies Act 2013 "Eligibility, qualifications and disqualifications of auditors"
(1) A person
shall be eligible for appointment as an auditor of a company
only if he is a chartered accountant:
(2) Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm.
following persons shall not be eligible for appointment as
an auditor of a company, namely: -
(d) a person who, or his relative or partner -
(i) is holding any security of or interest in the company
or its subsidiary, or of its holding or associate company or
a subsidiary of such holding company:
(ii) is indebted to the company, or its subsidiary, or
its holding or associate company or a subsidiary of such
holding company, in excess of such amount as
(iii) 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
(e) a person or a firm who, whether directly or indirectly, 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) a person whose relative is a director or is in the employment of the company as a 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;
(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) any person whose subsidiary or associate company or any other form of entity, is engaged as on the date of appointment in consulting and specialised services as provided in section 144.
(4) Where a person appointed as an auditor of a company incurs any of the disqualifications mentioned in sub-section (3) after his appointment, he shall vacate his office as such auditor and such vacation shall be deemed to be a casual vacancy in the office of the auditor.
Section 142 of Indian Companies Act 2013 "Remuneration of auditors"
(1) The remuneration of the auditor of a company shall be fixed in its general meeting or in such manner as may be determined therein:
Provided that the Board may fix remuneration of the first auditor appointed by it.
(2) The remuneration under sub-section (1) shall, in addition to the fee payable to an auditor, include the expenses, if any, incurred by the auditor in connection with the audit of the company and any facility extended to him but does not include any remuneration paid to him for any other service rendered by him at the request of the company.
Application for allotment of Director Identification Number, Allotment of Director Identification Number, Prohibition to obtain more than one Director Identification Number and Director to intimate Director Identification Number. Section 153, 154, 155 and 156 of Indian Companies Act 2013
Company to inform Director Identification Number to Registrar, Obligation to indicate Director Identification Number and Punishment for contravention. Section 157, 158 and 159 of Indian Companies Act 2013
What is Right of persons other than retiring directors to stand for directorship What is Appointment of additional director, alternate director and nominee director Section 160 and 161 of Indian Companies Act 2013