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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 3Question 37
    Medium1 markMultiple Choice
    Syllabus F: Management, administration and the regulation of companiesSection ACorporate and Business Law

    ACCA · Question 37 · Syllabus F: Management, administration and the regulation of companies

    Who generally has the power to appoint the first auditors of a newly incorporated company?

    Answer options:

    A.

    The shareholders via an ordinary resolution.

    B.

    The directors.

    C.

    The Registrar of Companies.

    D.

    The Secretary of State.

    How to approach this question

    Identify who manages the initial setup of the company before the first shareholder meeting.

    Full Answer

    B.The directors.✓ Correct
    The directors have the power to appoint the first auditors of the company. These auditors hold office until the conclusion of the first meeting at which the accounts are laid before the members. Thereafter, auditors are appointed by the shareholders by ordinary resolution.

    Common mistakes

    Assuming shareholders always appoint auditors, missing the exception for the *first* auditors.
    Question 36All questionsQuestion 38

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 3

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