Auditor appointment in certain companies requires special resolution; failure to pass it results in no auditor being appointed. Appointment or re appointment of an auditor at each annual general meeting must be made by special resolution where not less than twenty five per cent of subscribed share capital is held by specified public or state financial institutions, nationalised banks, or insurers carrying on general insurance business; failure to pass the special resolution is deemed to amount to no auditor having been appointed and invokes the consequential provisions for vacancies and appointments under the relevant statutory provision, with definitions provided for 'general insurance business' and 'nationalised bank.'