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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    View history reference

Subdivision A - Appointment of company auditors    View history reference

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

 View history reference

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)  

 View history reference
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.
 View history reference

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[236] contained the following application provision (which was effective 28 June 2007):

Application of items 63 and 64

The amendments made by items 63 and 64 of this Schedule apply in relation to information given to ASIC under subsection 327B(2A), (2B) or (2C), or 331AAA(2A), (2B) or (2C), of the Corporations Act 2001 on or after the day on which that item commences.

]

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.
 View history reference

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[236] contained the following application provision (which was effective 28 June 2007):

Application of items 63 and 64

The amendments made by items 63 and 64 of this Schedule apply in relation to information given to ASIC under subsection 327B(2A), (2B) or (2C), or 331AAA(2A), (2B) or (2C), of the Corporations Act 2001 on or after the day on which that item commences.

]

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.
 View history reference

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[236] contained the following application provision (which was effective 28 June 2007):

Application of items 63 and 64

The amendments made by items 63 and 64 of this Schedule apply in relation to information given to ASIC under subsection 327B(2A), (2B) or (2C), or 331AAA(2A), (2B) or (2C), of the Corporations Act 2001 on or after the day on which that item commences.

]

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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