S.159 (1) provides that “every company shall at each annual general meeting appoint an auditor or auditors to hold office from the conclusion of that, until the conclusion of the next, annual general meeting.”


S.159 (2)” a retiring auditor shall be deemed to be re-appointed without any resolution being passed unless: -

    1. He is not qualified for appointment; or
    2. A resolution has been passed at that meeting (i.e. annual general meeting) appointing somebody instead of him or providing expressly that he shall not be re-appointed; or
    3. He has given the company notice in writing of his unwillingness to be re-appointed.

According to this provision of the company’s Act an appointed auditor is deemed to be automatically re-appointed come the next annual general meeting for another term in office unless any of the three mentioned situations exist.