THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.5 - DEALERS' FINANCIAL STATEMENTS AND AUDIT

SECTION 858   REMOVAL AND RESIGNATION OF AUDITORS  

858(1)  [Circumstances allowing removal]  

A licensee:

(a)  shall remove an auditor of the licensee from office if the auditor becomes ineligible by virtue of section 857 to act as auditor of the licensee; and

(b)  may, with the Commission's consent, remove an auditor of the licensee from office.

858(2)  [Circumstances allowing resignation]  

An auditor of the holder of a licence may, by written notice given to the holder, resign as auditor of the holder if:

(a)  the auditor has, by written notice given to the Commission, applied for consent to the resignation and, at or about the same time as the auditor gave notice to the Commission, gave written notice to the holder of the application; and

(b)  the auditor has received the consent of the Commission.

858(3)  [Commission to notify consent to resignation]  

The Commission shall, as soon as practicable after receiving an application from an auditor under subsection (2), notify the auditor and the holder whether it consents to the resignation.

858(4)  [Admissibility of statement by auditor]  

A statement by an auditor in an application under subsection (2) or in answer to an inquiry by the Commission relating to the reasons for the application:

(a)  is not admissible in evidence in any civil or criminal proceedings in a court of this jurisdiction against the auditor other than proceedings for a contravention of section 1308; and

(b)  may not be made the ground of a prosecution (other than a prosecution for a contravention of section 1308), action or suit against the auditor;

and a certificate by the Commission that the statement was made in the application or in answer to an inquiry by the Commission is conclusive evidence that the statement was so made.

858(5)  [When resignation takes effect]  

Subject to subsection (6), the resignation of an auditor takes effect on:

(a)  the date (if any) specified for the purpose in the notice of resignation;

(b)  the date on which the Commission gives its consent to the resignation; or

(c)  the date (if any) fixed by the Commission for the purpose;

whichever last occurs.

858(6)  [Auditor to act until Commission consents]  

Where, on the retirement or withdrawal from a firm of a member, the firm will no longer be capable, because of paragraph 857(3)(a), of acting as auditor of the holder of a licence, the member so retiring or withdrawing shall, if not disqualified from acting as auditor of the holder, be deemed to be the auditor of the holder until the member obtains the consent of the Commission to the retirement or withdrawal.

858(7)  [Certain bodies corporate excluded]  

This section does not apply in relation to a body corporate (except a proprietary company) in relation to which section 329 applies.