THE CORPORATIONS LAW

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS

Division 2 - Registered schemes

SECTION 331AB   APPOINTMENT OF AUDITORS  

331AB(1)  [Appointment]  

Within 1 month after the day on which a registered scheme is registered, the responsible entity must appoint a person or persons, a firm or firms, or a person or persons and a firm or firms, as auditor or auditors of the scheme.

331AB(2)  [Vacancy]  

Within 1 month after a vacancy occurs in the office of auditor of a registered scheme, if there is no surviving or continuing auditor of the scheme, the responsible entity must appoint a person or persons, a firm or firms, or a person or persons and a firm or firms, to fill the vacancy.

331AB(3)  [While vacancy continues]  

While a vacancy in the office of auditor of a registered scheme continues, the surviving or continuing auditor or auditors (if any) may act.

331AB(4)  [Appointment]  

The responsible entity of a registered scheme must not appoint a person or firm as auditor of the scheme unless that person or firm has, before the appointment, consented to act as auditor by notice in writing given to the responsible entity and has not withdrawn that consent by notice in writing given to the responsible entity.

331AB(5)  [Notice]  

A notice given by a firm under subsection (4) is to be signed by a member of the firm who is a registered company auditor:

(a)  in the firm's name; and

(b)  in the member's name.

331AB(6)  [Contravening appointment]  

If the responsible entity of a registered scheme appoints a person or firm as auditor of the scheme in contravention of subsection (4), the purported appointment does not have any effect and the responsible entity, and any officer of the responsible entity who is in default, are each guilty of an offence.

331AB(7)  [Failure to appoint]  

If the responsible entity of a registered scheme does not appoint an auditor when required by this Law to do so, ASIC may, on application in writing by a member of the scheme, appoint as auditor or auditors of the scheme a person or persons, a firm or firms, or a person or persons and a firm or firms. An appointment can only be made with the consent of the person or firm concerned.

331AB(8)  [Offence]  

If a director of the responsible entity of a registered scheme fails to take all reasonable steps to secure compliance with subsection (1) or (2), the director is guilty of an offence.