Auditor Independence Under Companies Act: Section 144 Jurisprudence and 3-Year Cooling-Off Expansion

The proposed amendment to Section 144 of the Companies Act, 2013 introduces a three-year cooling-off period prohibiting outgoing auditors from rendering non-audit services to the company, its holding, or subsidiaries. This reform, flagged in March 2026 Companies Amendment Bill, addresses persistent independence erosion despite statutory prohibitions, building on NFRA’s enforcement actions and global scandals like Satyam (2009). Historical Foundations Pre-2013 Era: Companies Act 1956 Section...