Ashish MakkarAshish Makkar asked 1 year ago
2 Answers
RaviRavi Staff answered 1 year ago

Earlier in company act 1956, CA’s relatives having substantial interest and relative being director was not covered under disqualification, such things were prohibited as per clause 4 and related clarifications issued by ICAI. so these questions were solved only as per clause 4, these questions were originally drafted as per clause 4.
but now as per company act 2013, relative having shares and relative being director are covered as disqualification. when icai revised PM they saw it as disqualification under company act , and hence they applied Sec 141 & clause 9 where auditor has to check compliance of company act before acceptance.
in my opinion company act disqualification Sec 141 / clause 9 / clause 4 all the three should be specified while answering.
 
Final Conclusion
If there is close relationships with client see Cl 4 & Its clarifications by ICAI apply them then think about company act Sec 141 & Clause 9 if relevant apply them also. 

RaviRavi Staff answered 1 year ago

substantial interest means 20% or more
S2 P2 Cl2 will not be attracted. as it is applicable if other clauses dont cover non compliance of ca act , or regulations

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