COMPANIES ACT - 1963 (ACT 179)

    Section - 134 - Appointment and Remuneration of Auditors

    (1) No person shall be appointed as auditor of a company unless,

    (a) he shall prior to such appointment have consented in writing to be appointed; and

    (b) he is duly qualified in accordance with the provisions of section 270 of this Code, if appointed as auditor of a private company, or section 296 of this Code if appointed as auditor of a public company.

    (2) A partnership firm may be appointed, in the name of the firm, as auditors of a company, but, whether or not such firm is a body corporate, such appointment shall be deemed to be an appointment of such of the partners of the firm as, at the time of the appointment, are duly qualified.

    (3) The first auditors of a company incorporated after the commencement of this Code shall be appointed within three months of the incorporation of the company or prior to the delivery to the Registrar of the particulars required under section 27 of this Code, and every existing company shall, unless it already has duly qualified auditors, appoint auditors within three months after the commencement of this Code.

    (4) Notwithstanding any contrary provision in the company's Regulations, auditors shall be appointed by ordinary resolution of the company and not otherwise:

    Provided that,

    (a) the directors may appoint the first auditors of a company and may fill any casual vacancy in the office of auditor;

    (b) if a company shall have no auditor for a continuous period of three months the Registrar may appoint auditors.

    (5) Every existing auditor shall continue in office until,

    (a) he ceases to be qualified for appointment; or

    (b) he resigns his office by notice in writing to the company; or

    (c) an ordinary resolution is duly passed at an annual general meeting in accordance with section 135 of this Code removing him from office or appointing some other person in his place as from the conclusion of the annual general meeting;

    and when any casual vacancy occurs in the office of auditor the surviving or continuing auditor or auditors, if any, may act.

    (6) Notice of the names and addresses of the first auditors of a company incorporated after the commencement of this Code shall be given to the Registrar in accordance with section 27 of this Code.

    (7) Within three months after the commencement of this Code, every existing company shall give notice in the prescribed form to the Registrar for registration of the names and addresses of its auditors.

    (8) Within twenty-eight days after the occurrence of any change in the auditors of any company, the company shall give notice thereof in the prescribed form to the Registrar for registration.

    (9) Every company shall give notice to the Registrar if at any time after the commencement of this Code a continuous period of three months shall have elapsed without the company having a duly qualified auditor.

    (10) The remuneration of the auditors,

    (a) in the case of an auditor appointed by the directors or by the Registrar, may be fixed by the directors or the Registrar, as the case may be, for the period expiring at the conclusion of the next annual general meeting of the company;

    (b) subject as aforesaid, shall be fixed by an ordinary resolution of the company or in such manner as the company by ordinary resolution may determine.

    (11) For the purposes of the immediately preceding subsection, any sums paid or payable by the company in respect of the auditors' expenses shall be deemed to be included in the expression "remuneration".

    (12) If any company shall commit a breach of any of the provisions of this section or describe as auditor of the company any person who has not been duly appointed, the company and any officer of the company who is in default shall be liable to a fine not exceeding one hundred pounds.

    (13) For the purposes of subsections (6), (7) and (8) of this section, where a partnership firm is appointed auditors in the name of the firm, the firm name and business address shall be given to the Registrar and, for the purposes of such subsections a change in the constitution of the firm or of the partners therein who are auditors of the company shall not be deemed to be a change in the auditors.