Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS, SUSTAINABILITY REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

Division 5 - Auditor rotation for listed companies, listed registered schemes and registrable superannuation entities  

SECTION 324DA   LIMITED TERM FOR ELIGIBILITY TO PLAY SIGNIFICANT ROLE IN AUDIT OF A LISTED COMPANY, LISTED REGISTERED SCHEME OR REGISTRABLE SUPERANNUATION ENTITY  

324DA(1)    

If an individual plays a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for 5 successive financial years (the extended audit involvement period ), the individual is not eligible to play a significant role in the audit of the company, the scheme or the entity for a later financial year (the subsequent financial year ) unless:

(a)    the individual has not played a significant role in the audit of the company, the scheme or the entity for at least 2 successive financial years (the intervening financial years ); and

(b)    the intervening financial years:

(i) commence after the end of the extended audit involvement period; and

(ii) end before the beginning of the subsequent financial year.

Note: Play a significant role in an audit is defined in section 9 .

324DA(2)    

An individual is not eligible to play a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for a financial year if, were the individual to do so, the individual would play a significant role in the audit of the company, the scheme or the entity for more than 5 out of 7 successive financial years.

324DA(3)    

For the purposes of subsection (2) , disregard an individual ' s playing of a significant role in the audit of a company, scheme or entity for a financial year if:

(a)    

either:

(i) the directors of the company, scheme or entity grant an approval under section 324DAA in relation to the individual; or

(ii) ASIC makes a declaration under paragraph 342A(1)(a) in relation to the individual; and

(b)    

because of the approval or the declaration, subsection (1) of this section does not operate to make the individual not eligible to play a significant role in the audit of the company, scheme or entity for that financial year.