Dear Experts,

Kindly share your expert opinion on below query:

Can a Public Ltd.Co appoint a firm as Internal Auditors, whose managing Partner is a relative of Independent Director? If so appointed, Does the position of Independent Director get affected as such Director?

As per the relevant clause of section 149(6) -

(e) who, neither himself nor any of his relatives—
(ii) is or has been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed, of—
(A) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding, subsidiary or associate company; or

(B) any legal or a consulting firm that has or had any transaction with the company, its holding, subsidiary or associate company amounting to ten per cent. or more of the gross turnover of such firm;