Sunday, 15 March 2020

APPOINTMENT & REMUNERATION OF AN AUDITOR (S 357 & 361)


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APPOINTMENT AND REMUNERATION OF AUDITORS

Appointment of Auditors (S 357 of CAMA)
 Auditors are generally appointed by the shareholders (members) of a company in a general meeting by ordinary resolution and to hold office from the conclusion of that, until the conclusion of the next annual general meeting. It is however permissible for:
·         the directors to appoint the first auditors of the company and fill any casual vacancy in the office of the auditor (where at an annual general meeting, no auditors are appointed or re-appointed, the directors may appoint a person to fill the vacancy);
·         The Registrar of Companies or The Commissioner to appoint an auditor for a company if the company shall have had no auditors for a continuous period of three months. The written consent of a person is necessary before he can be appointed as an auditor


Auditors’ Remuneration (S 361 of CAMA)
Generally, the auditors’ remuneration is fixed by the members of the company in a general meeting by an ordinary resolution or in such manner as the company may determine. However, in the case of an auditor appointed by directors of the company, the remuneration may be fixed by the directors, for the period expiring at the conclusion of the next annual general meeting of the company


ARTICLE BY MONDAY DESMOND

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