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.