Do Shareholders Appoint Auditors?

The usual procedure is for a director who is a stockholder to move that a named accountant or accounting firm be the auditor for the company. The stockholders either approve or reject such motion or they can nominate another candidate by moving to amend the resolution.

Who appoints the auditors of a company?

How is a company auditor appointed? The directors appoint the first auditor of the company. He or she then holds office until the end of the first meeting of the shareholders at which the accounts are laid before the members.

Do shareholders choose auditors?

While auditor ratification has the potential to improve corporate govemance, many companies do not allow shareholders to vote on the company's selection of auditor.