LLP among Chartered Accountants will not be will not be treated as body corporate and therefore LLP CA firms can conduct Statutory Audits - Clarification regarding 'Body Corporate' for the purpose of section 226(3)(a) of the Companies Act, 1956. - LLP - 30A/2011

General Circular No. 30/2011 No 02/02/2011 CL.V Government of India Ministry of Corporate Affairs 5 th floor, 'A' Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi Dated: 26.05.2011 All the Regional Directors, All the Registrar of Companies Subject : Clarification regarding 'Body Corporate' for the purpose of section 226(3)(a) of the Companies Act, 1956. Sir, 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 auditor 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 (copy enclosed). Yours faithfully, (Kamna Sharma) Assistant Director Copy to: All concerned.