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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.
Representative action: Where individual shareholders have suffered personal loss in addition to the injury to the company one shareholder may bring a representative action on
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