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General Business Quiz
1. Depreciation is
 
The cost of a current asset wearing away
The cost of a replacement for a fixed asset
The salvage value of a fixed assets plus its original cost
The part of the cost of the fixed asset consumed during its period of use by the company
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Removal of auditors

 

A company can remove an auditor from office by an ordinary resolution at general meeting. Special notice of 28 days is required, as an auditor other than the retiring auditor will be appointed. Auditors cannot be removed outside of general meeting, even with a unanimous resolution. The auditor has a right to receive notice of the resolution and to make representations to the shareholders (also commonly referred to as members) in writing.

As with resignation, the representation should be forwarded to shareholders or may be read out in general meeting if received too late to be included with the notice of meeting. The auditor has the right to attend and be heard at the meeting, and at any general meeting where his term of office would otherwise have expired or where it is proposed to fill the auditor vacancy.

Within 14 days of the resolution being passed, the company must send notice of the resolution to the registrar and the auditor must deposit a statement of circumstances at the company’s registered office.

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