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 328B   NOMINATION OF AUDITOR  

328B(1)    
Subject to this section, a company may appoint an individual, firm or company as auditor of the company at its AGM only if a member of the company gives the company written notice of the nomination of the individual, firm or company for appointment as auditor:

(a)    before the meeting was convened; or

(b)    not less than 21 days before the meeting.

This subsection does not apply if an auditor is removed from office at the AGM.

328B(2)    
If a company purports to appoint an individual, firm or company as auditor of the company in contravention of subsection (1) :

(a)    the purported appointment is of no effect; and

(b)    the company and any officer of the company who is in default are each guilty of an offence.

Note: An officer of a company is in default if the officer is involved in the company ' s contravention of subsection (1) : see the definitions of in default and involved in section 9 .

328B(3)    
If a member gives a company notice of the nomination of an individual, firm or company for appointment as auditor of the company, the company must send a copy of the notice to:

(a)    each individual, firm or company nominated; and

(b)    each auditor of the company; and

(c)    each person entitled to receive notice of general meetings of the company.

This is so whether the appointment is to be made at a meeting or an adjourned meeting referred to in section 327D or at an AGM.

328B(4)    
The copy of the notice of nomination must be sent:

(a)    not less than 7 days before the meeting; or

(b)    at the time notice of the meeting is given.