APPOINTMENT OF AN AUDITOR (CAMA 1990)

APPOINTMENT OF AN AUDITOR (CAMA 1990)

Section 357 (1) it is mandatory on every limited liability coy at every AGM to appoint an auditor(s) to audit the financial statement of the coy and to hold office from the conclusions of the annual general meeting (AGM) until the conclusion of the next AGM.

Section 357 (2) at any AGM a retiring auditor, however appointed shall be re-appointed without resolution passed unless:

a)     He is not qualified for reappointment or

b)    A resolution has been passes at that meeting appointing some other persons instead of him or providing expressly that he shall not be reappointed or

c)     He has given the company notice in writing of his unwillingness to be reappointed:

Section 357 (3) where at an AGM, no auditors are appointed the directors may appoint a person to fill the vacancy.

Section 357 (4) The company shall within -one week of the power of the directors under sub (3) of this section becoming exercisable, given notice of their fact to Corporate Affairs Commission (CAC), failure-of ' which every officer of the coy who is in default shall be guilty of an offence and liable to a fine of MOO for every day during which the default continues.

Section 357 (5) The first auditor of a company may be appointed by the director at any time before the coy is entitled to commence business and auditor so appointed shall hold office until the conclusion of the next AGM. If the director fails to exercise this power, the coy in the general meeting convened for that purpose appoint first auditor' and thereupon, the power of the directors shall cease.

        i.            It is not mandatory on a company to finally appoint the auditors and temporarily appointed by the directors. The company may at AGM remove such auditors and appoint in their place, any member of the company and of whose nomination notice has been given to the members of the company not less than 14 days before the data of the meeting.

      ii.            If directors fail to exercise their power, the company may convey a general meeting for that purpose and they point the first director and the power of director's ceases.

Section 357 (6) also empowered the directors to fill the casual vacancy in the office of the auditor but while any such vacancy continues the surviving or continuing auditor or auditors if any may act. In me case of internal auditor, appointment is by the management of that organization.