Reports and balance sheets, Business Law and Ethics

Reports and balance sheets:

The reports and balance sheets for the years ending June 30, 1925, and, June 30, 1926, were signed by two directors.  The reports annexed to these balance sheets were signed by the auditors.  The question was:  What was the duty of auditors  in respect of these two balance sheets?

The auditors merely sent the reports and balance sheets to the secretary of the company, and they never got beyond the secretary.  The directors never called a general meeting to consider theses balance sheets and reports.

By S.162 (1) of the Companies Act "The auditors shall make a report to the members on the accounts examined through them, and on every balance sheet laid just before  the company in general meeting during their,  office's tenure......"

                   BENNET, J:

                   "....Does the statute impose on the auditors the duty of making their report to every member of the company?

Now if you give the words their plain meaning it would seem that that obligation is imposed on them.  But when you begin to reflect on the question it cannot, I think, have been the intention of the legislators to impose that duty on the auditors and it certainly has never been the practice, since the obligation has been imposed, for auditors themselves to send their reports to every member of the company...  I do not think it possible to hold that the words "the members"....  corresponding   "all the members".

Posted Date: 1/15/2013 2:41:32 AM | Location : United States







Related Discussions:- Reports and balance sheets, Assignment Help, Ask Question on Reports and balance sheets, Get Answer, Expert's Help, Reports and balance sheets Discussions

Write discussion on Reports and balance sheets
Your posts are moderated
Related Questions
Relief from Liability: Under s.402(1) the court has power in an action against an officer for breach of duty to grant relief where, although the officer is in breach, it appea

NATURE AND CATEGORIZATION OF LAW: Here the term "law" has no consigned meaning.  It is utilized in a variety of senses.  Nonetheless different writers have bond to explain the

Reports and balance sheets: The reports and balance sheets for the years ending June 30, 1925, and, June 30, 1926, were signed by two directors.  The reports annexed to these

John, a young CPA and one of the audit team members for Moulberg Electrical Appliances Ltd, has developed very good insights into the company's systems in the last 12 months and wa

Subject-Matter of the Contract Through S.7(1) the goods such form the subject-matter of a contract of sale may exist either  possessed  or existing goods may like owned by the

What is the dispute resolving mechanism Obligation to follow a treaty between states arises only when it has been concluded in a written form. Moreover, a treaty must be in a

Fraudulent concealment of a book: Hence it is nothing to him where dividends are properly or improperly declared, and provided he discharges his own duty to the shareholders.

Explain the white paper of parliamentary procedures. White Paper: It sets out the intention of the legislation and takes in account comments which have been received onto

Learning Outcomes: • Demonstrate knowledge of the basic elements of a contract • Demonstrate knowledge of which of those elements are pertinent to potential disputes within thi

What is the justification behind the right of innocent passage through territorial waters, when the waters actually form a part of the states sovereign territory? The rational