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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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