Mr. Shiv a CA is a director in x Ltd . State whether he is qualify to be auditor of Y Ltd holding company of X Ltd

2 answers

Yes he is allowed. No such disqualification under companies act 2013

#1
Ravi Staff March 28, 2018

yes he is qualified / not disqualified as per companies act
because sec 141(3) disqualifies only directors and employees of “that company” not of holding / subsidiary / associates / JV
so this is loophole 
but CA is should be careful, if he feels he wont be able to function independently then he should not accept such assignments
further as per ca act director of holding company and auditor of subsidiary cannot be same
but here in your case director of subsidiary wants to be auditor of holding which is absolutely fine not prohibited by ca act also 

#2

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