LLPs allowed for statutory auditors

Ministry of Corporate Affairs has clarified vide circular no. 30/2011 dated 26th May 2011 that LLPs of chartered accountants will be allowed to act as statutory auditors of companies as per the companies act, 1956. In the Act, there was a bar on body corporates to take up this function and since the LLP was defined as a body corporate under the LLP Act, this became sort of hindrance to the appointment of LLPs of chartered accountants as statutory auditors. MCA has relaxed this for the limited purpose of being appointed as an auditor.