Corporate and Other LawsMCQQuestion 12561 of 300
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Under Section 141(3)(d)(ii) of the Companies Act, 2013, a person is disqualified from being appointed as an auditor of a company if he, or his relative or partner is indebted to the company, its subsidiary or holding company in excess of:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — ₹5,00,000

All Options:

  • A₹5,00,000 ✓
  • B₹1,00,000
  • C₹10,00,000
  • D₹50,000

Detailed Solution & Explanation

Correct Answer: Option **A** (₹5,00,000) **Statutory Provision (Section 141 - Eligibility, Qualifications and Disqualifications of Auditors):** Section 141(3)(d)(ii) disqualifies any person who, or his relative or partner is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of ₹5,00,000. Therefore, Option A is the correct legal position under the ICAI curriculum.

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