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<h1>Directors must explain auditor reservations in their report per Section 217(3); a follow-up meeting may be needed.</h1> Directors must provide explanations for any reservations or qualifications in the auditors' report as part of their report, according to Section 217(3). If the auditors' remarks are unavailable when the board approves the balance sheet and profit and loss account under Section 215(3), a subsequent board meeting is necessary to address these remarks. The board's explanations should be included as an addendum to the main report. It is expected that the board and auditors collaborate effectively to ensure the timely exchange of necessary information.