Shareholders' Resolution to Appoint or Change Company Auditors Due to Resignation

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What is it?

A Shareholders' Resolution to Appoint or Change Company Auditors Due to Resignation is a resolution to appoint new auditors as a result of the resignation of the existing auditors.

Why do you need it?

Every company must appoint an auditor. Both the directors and shareholders of a company have the authority to appoint the first auditors of a company. Similarly, both the directors and shareholders of a company have the authority to appoint new auditors to fill a casual vacancy arising from the resignation of the existing auditors.

This document is used when the shareholders of a company decide to appoint new auditors to fill a casual vacancy.

The appointment or change of the company auditors requires an ordinary resolution. An ordinary resolution must be passed by shareholders representing at least 50% of the voting rights of the company.

The ordinary resolution may be passed at a general meeting of the shareholders or by way of a written resolution using a Shareholders' Resolution to Appoint or Change Company Auditors Due to Resignation.

Key clauses to watch for:

When drafting a Shareholders' Resolution to Appoint or Change Company Auditors Due to Resignation, it is important to focus on a number of key clauses, in particular:

  • Name of the existing auditors;
  • Name of the new auditors;
  • Names of the shareholders passing the resolution; and
  • Date of passing the resolution

Shareholders' Resolution to Appoint or Change Company Auditors Due to Resignation Document