Section 141. Eligibility, qualifications and disqualifications of auditors
(1) A person shall be eligible for appointment as auditor only if he is a chartered accountant. A firm or LLP whose majority of partners practising in India are qualified chartered accountants may be appointed in its firm name.
(2) Where a firm including LLP is appointed, only partners who are chartered accountants shall be authorised to act and sign on behalf of the firm.
(3) The following persons shall not be eligible for appointment as auditor, including a body corporate other than an LLP, an officer or employee of the company, a person who is partner or employee of an officer or employee, a person or relative/partner having prohibited interests or relationships with the company, a person indebted beyond prescribed limits or who has given prescribed guarantees, a person having prohibited business relationship, a person whose relative is a director or KMP, a person in full-time employment elsewhere or auditor of more than twenty companies, a person convicted of an offence involving fraud within ten years, or a person rendering services referred to in section 144 to the company or its holding or subsidiary.
(4) If an auditor incurs any disqualification after appointment, he shall vacate office and the vacancy shall be treated as a casual vacancy.
