In case of directly or indirectly services provided by individual auditor – if auditor creates company by keeping his 15 % share & balancing shares are kept by his relatives or any his associated or connected person, in that case is company able to provide services of sec. 144? Is auditor considered as disqualified?
1 Answers
If company is created by CA/ Firm to give services then we have to see shareholding of CA/Firm/Partners for purpose of directly/ indirectly giving services. Shares held by relatives is not considered.
So in above case, it will not be considered as giving services indirectly as shareholding of CA in company is below 20.