A Raman Gupta is offered appointment as auditor of a company. One of his distantuncles held some shares in the same company. Holding of such shares, by a distantrelative, is not prohibited under provisions of law nor does it affect hisindependence. Before he could accept appointment, he received unfortunate newsof death of his uncle who had died without any children. He came to know that hewas nominee of these shares having substantial value. It landed him in a trickysituation. What should be proper course of action for him?

Raman Gupta is in a complex situation, but there are a few steps he can take to navigate it.

1. Understand the Legal Implications: First, Raman should consult with a legal advisor to understand the implications of inheriting the shares. He needs to know if this inheritance would affect his eligibility to serve as an auditor for the company.

2. Consult the Company: Raman should also consult with the company about his situation. They may have policies in place for such situations that could guide his decision.

3. Consider Ethical Implications: Even if it is legally permissible for Raman to inherit the shares and serve as an auditor, he should consider the ethical implications. As an auditor, he is expected to be impartial. Owning shares in the company could potentially compromise this impartiality.

4. Make a Decision: Based on the legal advice, the company's policies, and his own ethical considerations, Raman should make a decision. If he decides to accept the shares, he may need to decline the auditor position. If he decides to accept the auditor position, he may need to decline the shares or find a way to manage them that does not compromise his impartiality.

5. Communicate the Decision: Once Raman has made his decision, he should communicate it to all relevant parties. This includes the company, any regulatory bodies, and the executor of his uncle's estate.

Remember, it's important for Raman to maintain his professional integrity throughout this process.