Companies Act 2014 section 384

Appointment of statutory auditors by directors in other cases, etc.

Section 384 deals with the duty of directors to appoint statutory auditors when a casual vacancy arises or when the company loses its audit exemption.

• Directors must fill any casual vacancy in the office of statutory auditors as soon as possible after it arises.
• If the company loses its entitlement to the audit exemption for a financial year, directors must promptly appoint statutory auditors.
• Auditors appointed under either of these circumstances hold office until the end of the next annual general meeting following their appointment.
• These provisions ensure there is no gap in audit coverage when unexpected changes occur.