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Directors – can appoint the first auditor or to fill a ‘casual vacancy’. This requires the members’ approval at a members’ meeting. In some countries the auditors may be appointed by the directors as a matter of course.
ma’am i have doubt specifically relating to the last line. Could you elaborate on how exactly auditors are appointed by directs as a matter of course, as in under what conditions? some examples if you could share?
Many thanks!
If this is something you have heard said I think what it means is that the directors effectively appoint the auditors because the directors make the recommendation who to appoint and members/shareholders simply accept the recommendation – or maybe the directors hold more than 50% of the voting rights in any case. It may be traditional in some countries for a company’s shares to be owned only by family members (e.g. Italy).
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