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Central Government Act
Section 224(1B) in The Companies Act, 1956
(1B) 3 On and from, the financial year next following the commencement of the Companies (Amendment) Act, 1974 (41 of 1974 ), no company or its Board of directors shall appoint or re- appoint any person 4 who is in full time employment elsewhere] or firm as its auditor if such person or firm is, at the date of such appoint- ment or re- appointment, holding appointment as auditor of the specified number of companies or more than the specified number of companies: 4 Provided that in the case of a firm of auditors," specified number of companies" shall be construed as the number of companies specified for every partner of the firm who is not in full- time employment elsewhere:]
Provided further that where any partner of the firm is also a partner of any other firm or firms of auditors, the number of compa- nies which may be taken into account, by all the firms together, in relation to such partner shall not exceed the specified number in the aggregate: Provided also that where any partner of a firm of auditors is also holding office, in his individual capacity, as the auditor of one or more companies, the number of companies which may be taken into account in his case shall not exceed the specified number, in the aggregate.