Auditor disqualification bars appointment where relative holdings, indebtedness or guarantees exceed permitted thresholds; business relationship exceptions apply. Rule 10 sets disqualification criteria for auditors by reference to monetary thresholds and defined relationships: relatives of an auditor may hold company securities up to a prescribed threshold subject to corrective action within sixty days if exceeded; indebtedness of the auditor, or the auditor's relative or partner, to the company or its related entities beyond a prescribed limit disqualifies appointment; providing guarantees or securities for third party indebtedness beyond a prescribed limit also disqualifies. 'Business relationship' is any commercial transaction, excluding permitted professional services and ordinary course arm's length transactions in certain industries.
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Auditor disqualification bars appointment where relative holdings, indebtedness or guarantees exceed permitted thresholds; business relationship exceptions apply.
Rule 10 sets disqualification criteria for auditors by reference to monetary thresholds and defined relationships: relatives of an auditor may hold company securities up to a prescribed threshold subject to corrective action within sixty days if exceeded; indebtedness of the auditor, or the auditor's relative or partner, to the company or its related entities beyond a prescribed limit disqualifies appointment; providing guarantees or securities for third party indebtedness beyond a prescribed limit also disqualifies. "Business relationship" is any commercial transaction, excluding permitted professional services and ordinary course arm's length transactions in certain industries.
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