sir I am asking about disqualification of auditor .what if auditor relative hold share on 1/4/2014 of Rs.100000 and in 1/7/2014 company declared bonus .and give bonus 10000 to auditor relative. is auditor disqualified from audit

1 answer

Ravi Staff March 1, 2015

hello vinay, I am assuming 1,00,000 is face value and as per CAAR rules relative can hold shares not exceeding 1,00,000, so its fine. further if there is bonus issue and total holding goes beyond 1,00,000 then as per CAAR rules 2014 relatives have 60 days to take corrective action. so if relative sale of 10,000 shares within 60 days of bonus then auditor will not get disqualified. if share holding is not reduced within 60 days then he will get disqualified.   Ravi

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