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Every year I get prospectus for several different stocks with voting instructions for board members and a few other things. Evey single one has "Shall XXX be approved as the accounting firm?" What happens if stock election to approve accounting firm results in not approved?

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    The board would have to look for another accounting firm, and -- I would imagine -- have to have that choice approved at an EGM. – TripeHound Mar 28 '18 at 7:08
  • I'm interested in why these votes are held at all; if someone could add that to the answer that would add a bit of context. i.e.. why is selection of an accounting firm a shareholder matter, but not the selection of any other contractor/consultant. – JeffUK Mar 28 '18 at 12:12
  • @JeffUK Because the shareholders are the owners, and have a more direct interest in the accuracy of the financial statements overall than what contractor the company uses to, say, clean the buildings (that decision is entrusted to the CEO or COO) – D Stanley Mar 28 '18 at 13:43
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    @DStanley that's a strawman though, of course they don't get to vote in the cleaners. but what about if they outsource a key part of their operation like IT or customer services, in which the shareholders have a direct interest. Having thought some more.. I think it's that the accountants are the check and balance against fraud by the managers which will damage the shareholders, so they must have the trust of the shareholders. – JeffUK Mar 28 '18 at 14:38
  • @JeffUK Exactly - the cleaners was an extreme example - other "operational" contractors would be under the purview of management as well. It might go to the BOD, but not the shareholders (most of whom couldn't care less). – D Stanley Mar 28 '18 at 15:19

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