Penalty for improper appointment, Business Law and Ethics

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PENALTY FOR IMPROPER APPOINTMENT:

          S.161 (4) provides that if any unqualified person is appointed as auditor, the person appointed, the company and every officer in default, shall be liable to a fine not exceeding Shs.4,000/-.

Persons Who Cannot Be Appointed:

          Under S.161 (2) none of the following persons shall be qualified for appointment as auditor of a company

      a) As such an officer or servant of the company;

      b) As such a person who is a partner of or in the employment of an officer or servant of the company (unless the company is a private company);

       c) Next is, a body corporate, and

       d) Now next is, persons who are disqualified for appointment as auditor of the company's subsidiary or holding company or subsidiary of the company's holding company.


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