BALANCE SHEET AND AUDIT 181
power (otherwise than under a debenture trust deed) to
appoint the majority of the directors of the latter company.
[f the ordinary business of the former company includes the
lending of money, shares in the latter company held by the
former company as security only are not taken into account in
determining whether the latter company is a subsidiary of the
former company. A company may be a subsidiary company
though it is not a ‘company’ within the meaning of the Act, e.g.
a statutory company or a foreign company may be a sub-
sidiary company within the meaning of the Act.

Every balance sheet (not being the balance sheet of a Signing and
banking company) must be signed by two directors, or if the Circulation
company has only one director by that director [s. 129 (1)]. As x coalance
to the balance sheet of a banking company see s. 129 (2), and ’
as to the statement required of banking companies, certain
assurance companies and deposit, provident or benefit
societies see s. 131.

[n the case of a public company a copy of the balance sheet
together with every document required by law to be annexed
thereto and a copy of the Auditors’ report must be sent to
every person entitled to receive notice of the meeting not less
than seven days before the holding of the meeting to con-
sider such balance sheet [s. 130 (1) (4)], and any member,
whether entitled to receive notice of the meeting or not, and
any holder of debentures or debenture stock is entitled on de-
mand without charge to a copy of such balance sheet and
documents {s. 130 (1) (b)]. In the case of a private company
the balance sheet and documents need not be circulated, and
copies thereof need only be supplied to members and to them
only upon payment of not exceeding sixpence for every hundred
words as provided by s. 130 (2).

Foreign companies to which Part XI of the Act applies
‘see Chapter XXV) must make out and file with the Registrar
a balance sheet in the same form and including the same
documents as a company within the meaning of the Act; and
if the balance sheet is not in the English language a certified
translation must be attached thereto [s. 347].

The appointment, remuneration and duties of auditors are Auditors.
defined by s. 132 and 134.

The first auditors of a company may be appointed by the Appointment
directors at any time before the first annual general meeting, of Auditors.
and will then hold office until that meeting unless the com-
pany at a general meeting of which notice has been served on
the auditors in the same manner as on members of the company
removes such auditors and appoints others in their place. 1°

Foreign
Companies.