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