Public Litigation in case of Auditors of Listed Public Limited Companies

shantilal k. patel (Querist) 05 August 2008 This query is : Resolved

Can firm of chartered accountants be prevented to act as auditor of listed public limited companies if

(a)one of the parter has filed criminal/civil cases against other partners
(b)They do not talk to each other.
(c)there was fight amoung the partners,matter went to the court and court directed that all the financial transactons should be sign by two partners each representing one group
(d)filing cases by partners against each other is a ongoing process

Can Hight Court restrain such firm to
act as a Auditor of Listed Public Limited Companies if PIL is filed?

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Dhrumil (Expert) 05 August 2008
but why PIL. you can ask the board to call eogm. However dispute between partner of audit firm not materially affect the company unless some fraud is taken place.if you notice the the audit report is sign by only one partner. in my veiw is is difficult to get redressal from PIL.

Guest (Expert) 05 August 2008
PIL is not possible. ICAI Act has sufficient safegaurds to see that the Reporting of the Firm is done as per ICAI regulations, so there ends the matter.

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