CORPORATIONS ACT 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.4 - APPOINTMENT AND REMOVAL OF AUDITORS  

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

Subdivision A - Appointment of company auditors  

SECTION 327B   PUBLIC COMPANY AUDITOR (ANNUAL APPOINTMENTS AT AGMs TO FILL VACANCIES)  

327B(1)  
A public company must:


(a) appoint an auditor of the company at its first AGM; and


(b) appoint an auditor of the company to fill any vacancy in the office of auditor at each subsequent AGM.

327B(1A)  


Subsection (1) does not apply in relation to a company if:


(a) subsection 301(3) applies to the company ' s financial reports; or


(b) the company is a small company limited by guarantee.

327B(2)  
An auditor appointed under subsection (1) holds office until the auditor:


(a) dies; or


(b) is removed, or resigns, from office in accordance with section 329 ; or


(c) ceases to be capable of acting as auditor because of Division 2 of this Part; or


(d) ceases to be auditor under subsection (2A), (2B) or (2C).

327B(2A)  
An individual auditor ceases to be auditor of a company under this subsection if:


(a) on a particular day (the start day ), the individual auditor:


(i) informs ASIC of a conflict of interest situation in relation to the company under subsection 324CA(1A) ; or

(ii) informs ASIC of particular circumstances in relation to the company under subsection 324CE(1A) ; and


(b) the individual auditor does not give ASIC a notice, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

327B(2B)  
An audit firm ceases to be auditor of a company under this subsection if:


(a) on a particular day (the start day ), ASIC is:


(i) informed of a conflict of interest situation in relation to the company under subsection 324CB(1A) ; or

(ii) informed of particular circumstances in relation to the company under subsection 324CF(1A) ; and


(b) ASIC has not been given a notice on behalf of the audit firm, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

327B(2C)  
An audit company ceases to be auditor of a company under this subsection if:


(a) on a particular day (the start day ), ASIC is:


(i) informed of a conflict of interest situation in relation to the company under subsection 324CB(1A) or 324CC(1A) ; or

(ii) informed of particular circumstances in relation to the company under subsection 324CF(1A) or 324CG(1A) or (5A) ; and


(b) ASIC has not been given a notice on behalf of the audit company, before the notification day (see subsection (2D)), that that conflict of interest situation has, or those circumstances have, ceased to exist before the end of the period (the remedial period ) of 21 days, or such longer period as ASIC approves in writing, from the start day.

327B(2D)  
The notification day is:


(a) the last day of the remedial period; or


(b) such later day as ASIC approves in writing (whether before or after the remedial period ends).

327B(3)  
A director of a company must take all reasonable steps to comply with, or to secure compliance with, subsection (1).

327B(4)  
If an audit firm ceases to be the auditor of a company under subsection (2) at a particular time, each member of the firm who:


(a) is taken to have been appointed as an auditor of the company under subsection 324AB(1) or 324AC(4) ; and


(b) is an auditor of the company immediately before that time;

ceases to be an auditor of the company at that time.


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