Director act as an auditor after resignation, Corporate Laws / SEBI / LLP

[anil kalia]

Can a director(not wholetime) of a company resigns and be appoited as auditor of the same company.

Posts / Replies

[Markesh Antony]

There are various guidelines in which an auditors is being appointed for a company. It seems that there should not be any issue or problem to appoint a former director as an auditor of a company provided he satisfies all the conditions. The first and most condition in this case that he should not have any interest in the company. A director who has resigned from a company board, who has received remuneration and sitting fees, it may be difficult for him to satisfy the conditions of an independent director.