{"id":33363,"date":"2020-02-26T15:40:18","date_gmt":"2020-02-26T07:40:18","guid":{"rendered":"https:\/\/zegal.com\/appoint-company-auditors\/"},"modified":"2024-12-27T17:40:07","modified_gmt":"2024-12-27T09:40:07","slug":"appoint-company-auditors","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-nz\/appoint-company-auditors\/","title":{"rendered":"Free Appoint Company Auditors"},"content":{"rendered":"\n

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<\/span>Company auditors FAQ<\/span><\/h2>\n\n\n\n

<\/span>What is the purpose of an auditor in a company?<\/span><\/h3>\n\n\n\n

An auditor will analyse the accounts kept by the directors of a company and give financial updates on the general state of the business.<\/p>\n\n\n\n

Their role is to safeguard the interest of a company\u2019s shareholders, and their analysis of the company\u2019s financial position helps investors and shareholders make future decisions. <\/p>\n\n\n\n

<\/span>Why do I need to appoint company auditors? <\/span><\/h3>\n\n\n\n

A newly incorporated company, whether public or private, needs to appoint its first auditors.<\/p>\n\n\n\n

Generally, they are put in place by the company\u2019s board of directors<\/a> by passing a resolution (Director\u2019s resolution or Board resolution) within a certain time limit.<\/p>\n\n\n\n

Different countries have different time limits. For example, in Hong Kong, the board must appoint an auditor before the company\u2019s annual general meeting. <\/p>\n\n\n\n

In cases where the board has yet to appoint the first auditors, the company\u2019s shareholders<\/a> can appoint them in a general meeting.  <\/p>\n\n\n\n

Importantly, for any incorporated company, whether private or public, appointing the first auditors for the first financial year is a requirement under corporate law.  <\/p>\n\n\n\n

<\/span>How can I appoint company auditors?<\/span><\/h3>\n\n\n\n

Essentially, there are two ways to appoint company auditors. <\/p>\n\n\n\n

Firstly, the board of directors can appoint the first auditors<\/a> by passing a resolution. Secondly, the company\u2019s shareholders can appoint auditors by passing a resolution in the shareholders\u2019 meeting<\/a>.<\/p>\n\n\n\n

Generally, a company must appoint auditors annually by the shareholders at the annual general meeting. However, the board of directors can appoint auditors for the first financial year of a newly incorporated company.<\/p>\n\n\n\n

They can do this using a Directors\u2019 Resolution to Appoint First Auditors<\/a>.<\/p>\n\n\n\n