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Atharva Apte asked 1 year ago

Under sub-section 3 of section 141 along with Rule 10 of the Companies (Audit and Auditors) Rules, 2014, the following persons shall not be eligible to be appointed as auditor of a company:
In that:

  • a relative may hold security or interest in the company not exceeding Rs.100000. This shall also be applicable, where relevant, in case of company not having share capital.

What could be an example of the point above?

1 Answers
RaviRavi Staff answered 1 year ago

in company not having share capital, generally members give guarantee for membership, it is called limited by guarantee.
in such case relatives can give guarantee up to Rs 1,00,0000 
we have explained this in our lectures.

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