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2019 (1) TMI 338 - Tri - Companies LawAuthority of statutory auditor to function in the company whose relative or partner is holding any security or interest of the company - Held that:- It is recorded that family members of R1 are share holders of the R2 Company whereas Section 141(3)(d) specifically prohibits a statutory auditor whose relative or partner is holding any security or interest of the company - It is amply clear that family members of the statutory auditor of R1 are share holders of R2 company and R1 has issued audit certificate of the company even without examining any Books of Account of the R2 Company which is clear cut violation of the statutory provision of the Section 141(3)(d) of the Companies Act, 2013. The Respondent No. 1 shall immediately cease to function as statutory auditor of Respondent No. 2 Company - Petitioner is permitted to appoint an independent auditor for the Respondent No 2 Company to replace Respondent No 1, in terms of the first proviso to Section 140(5) of the Companies Act, 2013 read with Explanation I thereto. List on 04.02.2019 for final argument.
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