DOMINION LEGISLATION—AUSTRALIA 825

222 (2) and (7). Auditors must use reasonable diligence
with the view of ascertaining that the books
of the company have been properly kept,
and must obtain from the directors before
reporting, a private balance sheet giving the
details on which the shareholders’ balance sheet
is founded, and shewing amongst other things,
the amount of deduction (if any) for bad or
doubtful debts.

0 person may act as auditor for a company unless
he is licensed by the Companies’ Auditors’
Board, which is a Board of three persons
appointed by the governor.

Proprietary Company’ is a company which by its
memorandum imposes on itself the same
limitations as are imposed on a private company
by s. 26 of the English Act of 1929, and, in
addition, prohibits the receipt, except from
its members, of deposits whether bearing
interest or not. Its certificate of incorporation
must certify that it is a proprietary company,
and the word ‘proprietary’ must be inserted
in its name immediately before ‘limited.’

No director, manager or promoter may be appointed
voluntary liquidator except by a resolution of
creditors at a meeting called for that purpose.

Foreign Companies. A foreign company
‘which includes any unincorporated body or
association which may sue or hold property
in the name of its secretary or other authorised
officer) is one incorporated outside Tasmania
which fcarries on business in Tasmania, but a
company is not deemed to be ‘carrying on
business,’ if it only sells goods by an agent, or
nas only invested its funds or other property
in the State. It must, within one month of
commencing business, file with the registrar a
certified copy of its constitution, a list of the
directors in the country where it is incorporated
and in Tasmania (if any), and the name and
address of its agent. A foreign limited com-
pany must in every prospectus issued in Tas-
mania state the country in which it is incor-
porated. Foreign companies carrying on the
business of trustees and executors must deposit
a security of £5000.

5. 269. No company may purchase or
own shares or debentures

J

For the distinction between * carrying on business’ and ‘establishing a place
~f Lord Advocate v. Huron & Erie Loan Co. 1011. Scottish Cases. 61°

business