A person shall not be qualified for the appointment as auditor of public company and a private company which is a subsidiary within the meaning of the chartered accountant, unless he is a chartered accountant with in the meaning of character accountant ordinance. If remuneration of the auditor is not paid, question arises, whether an auditor can exercise a right of lien on the books of account or not. This means whether an auditor is in a position to say that he will not return the books until his fee is paid.
As auditor is appointed by shareholders, and he is required to submit his report to the shareholders, therefore the auditor will bind the members for the purpose of the auditor. So the auditor may be the agent of the shareholders in connection with the audit of accounts.
As the first auditor are appointed by the directors before the statutory meetings to audit the statutory report, such auditors may be removed by the shareholders before the annual general meeting after passing a resolution at the statutory meeting and appoint another auditors. Apart from this removal, auditor cannot be removed by the shareholders until annual general meeting.
As auditor is appointed by shareholders, and he is required to submit his report to the shareholders, therefore the auditor will bind the members for the purpose of the auditor. So the auditor may be the agent of the shareholders in connection with the audit of accounts.
As the first auditor are appointed by the directors before the statutory meetings to audit the statutory report, such auditors may be removed by the shareholders before the annual general meeting after passing a resolution at the statutory meeting and appoint another auditors. Apart from this removal, auditor cannot be removed by the shareholders until annual general meeting.