Answer the following with regard to appointment of auditor : (i) X, a practising chartered accountant holds shares in ABC Ltd. The nominal value of shares is ₹50,000. Whether ABC Ltd can appoint him as auditor?

Section 141(3) of the Companies Act, 2013 provides that a person shall not be eligible for appointment as an auditor of a company when he himself or his relative or partner is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company. In this case Mr. X, a practicing Chartered Accountant holding shares in ABC Ltd cannot be appointed as Auditor of that company.