10. Auditors

10.1 QUALIFICATION, APPOINTMENT AND REMOVAL

Qualification

1. Professional qualifications
2. Independence and Ethics

Appointment

1. Shareholder Approval: The appointment of auditors is generally subject to the approval of the shareholders. The appointment is typically proposed by the board of directors or the audit committee.
2. Annual General Meeting (AGM): In many jurisdictions, the appointment of auditors is confirmed or reappointed at the AGM of the company, where shareholders have the opportunity to vote on the appointment.
3. Term of appointment: The appointment of auditors is usually for a specific term, typically one year. However, longer terms may be allowed in some jurisdictions, subject to legal requirements and shareholders’ approval.
4. Rotation of auditors: Some jurisdictions impose mandatory rotation requirements for auditors to promote independence and fresh perspectives. This means that after a certain period, the company must change its auditors or engage a different audit firm.

Removal

1. Resignation: Auditors may voluntarily resign from their position by providing a notice to the company.
2. Removal by shareholders: Shareholders have the authority to remove auditors before the expiration of their term.

Regulatory intervention: Regulatory bodies overseeing auditing and accounting practices may have the authority to remove auditors if there are serious breaches of professional conduct, non-compliance with regulations, or other misconduct.