BALANCE SHEET AND AUDIT 18; 
3 
before the meeting, of intention to nominate. It is 
then the duty of the company to send a copy of the 
notice to the retiring auditor, and notify the members, 
either by advertisement or in any other manner allowed 
by the articles, not less than seven days before the 
meeting. 
But if, after the shareholder’s notice has been given, 
a meeting is called for a date fourteen days or less 
after the notice has been given, the shareholder's 
notice is to be deemed good, and the notice by the 
company may be sent or given at the same time as the 
notice of the meeting. 
These provisions are intended to protect, and will protect, 
a retiring auditor. He will know when his re-election is to be 
opposed, since a proposal to appoint another auditor in his 
place cannot be sprung upon him and the shareholders at the 
general meeting without notice. Apparently, even if the 
directors omit to give notice, either to the retiring auditor 
or to the members, of the nomination of the new auditor 
(and there is no penalty for the neglect), he, as well as the 
retiring auditor, will still be eligible for election. 
Casual vacancies in the office of auditor may be filled by 
the directors, but during the continuance of the vacancy the 
surviving or continuing auditor or auditors (if any) may act 
s. 132 (5)]. 
As regards the remuneration of auditors, where the Board 
of Trade appoints, it may also fix the remuneration; where 
the company in general meeting appoints, it fixes the remun- 
aration; and where the directors appoint, .e. before the first 
annual general meeting, or to fill a casual vacancy, they fix ii 
s. 132 (6)]. 
The rights and duties of auditors are set out in s. 134 of the Rights and 
Act, and are as follows: Duties of 
. . Auditors. 
1° The auditors shall make a report to the members 
on the accounts examined by them, and on every 
balance sheet laid before the company in general 
meeting during their tenure of office, anc renort 
shall state— 
‘a) whether or not they have obtained all the informa 
tion and explanations they have required; and 
whether, in their opinion, the balance sheet 
referred to in the report is properly drawn up so 
as to exhibit a true and correct view of the state 
of the company’s affairs according to the best