09-03-2003, 08:21 PM
Hi Meer!
Auditors all over the world are appointed by the corporation which is a seperate legal entity. In practice, the appointment is done in general meeting. We have to remember that directors and officers of the company act on behalf of corporation. Corporation has seperate existence from any of them. Of course the practical matters are decided by board of directors where majority shareholders have control. But they are supposed to act in the interest of all shareholders not just majority shareholders.
Thank you
Auditors all over the world are appointed by the corporation which is a seperate legal entity. In practice, the appointment is done in general meeting. We have to remember that directors and officers of the company act on behalf of corporation. Corporation has seperate existence from any of them. Of course the practical matters are decided by board of directors where majority shareholders have control. But they are supposed to act in the interest of all shareholders not just majority shareholders.
Thank you
