Sec 274: Auditor’s Remuneration

Section 274 – Auditor’s Remuneration (Companies Act 2016)

Section 274(1): Who fixes the auditor’s remuneration depends on who appointed the auditor:

a. If appointed by the members (shareholders):

• The auditor’s remuneration shall be fixed by the members
• either by ordinary resolution,
• or in any manner the members may determine SSM

b. If appointed by the Board of Directors:

• The remuneration shall be fixed by the Board,
• and if the Board does not fix it, then it shall be fixed by the company (the members) SSM

c. If appointed by the Registrar:

• The remuneration shall be fixed either by the Registrar or by the Board
• and if not fixed by them, then by the company SSM

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Section 274(2): Meaning of “remuneration”
“Remuneration” includes not just the audit fee in cash, but also:

• any sums paid in respect of expenses, and
• any payment otherwise than cash (non-cash benefits) SSM

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Exam memory tip:

• Members fix fee if they appoint.
• Board fixes fee if they appoint.
• Registrar/Board fixes fee if Registrar appoints.
• “Remuneration” = cash + expenses + non-cash.