Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS, SUSTAINABILITY REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 6 - Appointment, removal and fees of auditors for companies  

Note: This Division does not apply in relation to a CCIV. Instead, section 1232R applies a modified version of Division 7 to a retail CCIV.

Subdivision A - Appointment of company auditors  

SECTION 327E   ASIC MAY APPOINT A COMPANY AUDITOR IF AUDITOR REMOVED BUT NOT REPLACED  

327E(1)    

This section applies if:

(a) the directors of a proprietary company fail to appoint an auditor under subsection 325(2) ; or

(b) a public company fails to appoint an auditor under subsection 327D(2) or (3).

The failure is referred to as the auditor replacement failure .

327E(2)    
The company must give ASIC written notice of the auditor replacement failure within the period of 7 days commencing on the day of the auditor replacement failure (the notification period ).

327E(3)    
If the company gives ASIC the notice required by subsection (2), ASIC must appoint an auditor of the company as soon as practicable after receiving the notice. This subsection has effect subject to section 327G .

327E(4)    
If the company does not give ASIC the notice required by subsection (2), ASIC may appoint an auditor of the company at any time:

(a) after the end of the notification period; and

(b) before ASIC receives notice of the auditor replacement failure from the company.

This subsection has effect subject to section 327G .

327E(5)    
If the company:

(a) does not give ASIC the notice required by subsection (2); and

(b) gives ASIC notice of the auditor replacement failure after the end of the notification period;

ASIC must appoint an auditor of the company as soon as practicable after receiving the notice. This subsection has effect subject to section 327G .

327E(6)    

Subject to this Part, an auditor appointed under this section holds office until:

(a) for a proprietary company - the company ' s next general meeting; or

(b) for a public company - the company ' s next AGM.