By DMLF Team
Where a private limited company consists of ten and more members or its total asset exceeds ETB 10,000,000, the PLC shall have an independent and impartial external auditor.
An Auditor is elected by the general meeting of shareholders.The general meeting of shareholders determines the remuneration of the auditor.
The general meeting of shareholders may revoke the appointment of an auditor. However an auditor can claim damages if the revocation is without good cause.
The term of appointment of an auditor extends till the closing of three financial years. The auditor shall submit to the general meeting its written comments on the report of the general manager or board of directors presented to the general meeting. Such a report by the Auditor shall show the manner in which they have carried their duties.
Finally the Auditor has the right to call general meetings of shareholders where the directors or general managers fail to call a meeting required by law or the memorandum of association.
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