Clarification regarding 'Body Corporate' for the purpose of section 226(3)(a) of the Companies Act,1956. - Companies Law - 30A/2011

General Circular No. 30A/2011 No. 02/02/2011-CL.V Government of India Ministry of Corporate Affairs 5 th Floor, A Wing, Shastri Bhawan, Dr. R.P. Road, New Delhi Dated: 26.05.2011 To All the Regional Directors, All the Registrar of Companies, Subjects:- Clarification regarding 'Body Corporate' for the purpose of section 226(3)(a) of the Companies Act,1956. The Ministry of Corporate Affairs has received representation from the Institute of Chartered Accountants of India wherein they have stated that under section 226(3)(a) of the Companies Act, 1956 a body corporate is disqualified from appointment as audzitor by a company. Since LLP is a body corporate as per section 3(1) of the Limited Liability Partnership Act, 2008, LLP among Chartered Accountants will not be qualified for appointment as auditor under section 226(3)(a) of the Companies Act, 1956. 2. It is hereby clarified that Limited Liability Partnership of chartered accountants will not be treated as body corporate for the limited purpose of section 226(3)(a) of the Companies Act, 1956 and notification in this respect has been sent for publication in the Gazette of India. Yours faithfully, (Kamna Sharma) Assistant Director Notification issued vide S.O. No. 1152(E) dated: 23.05.2011 (Copy) [TO BE PUBLISHED IN THE GAZETTE OF INDIA PART II, SECTION 3, SUB-SECTION (ii), EXTRAORDINARY] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION NEW DLEHI: 23.05.2011 S.O. 1152 (E).- In exercise of the powers conferred by clause (c) of sub-section (7) of section 2 of the Companies Act, 1956 (1 of 1956), the Central Government hereby specifies, for the purpose of the said clause, the Limited Liability Partnership, a body corporate, incorporated under clause (1) of section 3 of Limited Liability Partnership Act, 2008 (6 of 2009), for the limited purpose of clause (a) of sub-section (3) of section 226 of the Companies Act, 1956. F. No. 2/2/2011 J.N. Tikku Joint Director Note:- The Principal notification was published vide number G.S.R. 1883 dated the 20 th December, 1965