Clarification on provisions of Section 224A of the Companies Act, 1956

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....of Section 224A of the Companies Act, 1956 ***** Department of Company Affairs had recently received a reference regarding clarification in respect of Section 224A of the Companies Act, 1956 which relates to appointment of auditor in certain cases with the approval of the company by special resolution. The clarification had been sought on sub-section (1) of that section which reads as under: 2....

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....A) should be treated as mutually exclusive. According to them, the aggregate holdings of the institutions grouped under either clause (a) or clause (b) or clause (c) of section 224A(1) are to be treated as mutually exclusive and are not to be aggregated with institutions covered by any other sub clause, for determining the applicability of section 224A. 3. This Department has examined this matter....