Notification No. F. No. 1/1/2014-CL.V  Dated : 5-6-2015

 

Exemptions to Private Companies under section 462 of CA 2013

Chapter X, Clause (g) of sub-section (3) of section 141.

 

 OLD

a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies

 

NEW

a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies other than one person companies, dormant companies, small companies and private companies having paid-up share capital less than one hundred Crore rupees.

Auditor appointment cap narrowed by excluding certain company types from the count, easing reappointment constraints for auditors. The amendment to Clause (g) of sub section (3) of section 141 excludes one person companies, dormant companies, small companies, and private companies with paid up share capital below the prescribed threshold from the aggregation used to determine whether a person or partner holds appointments in excess of the statutory ceiling, thereby changing the calculation for auditor appointment or reappointment.