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CORPORATIONS ACT 2001 - SECT 324DA

Limited term for eligibility to play significant role in audit of a listed company, listed registered scheme or registrable superannuation entity

  (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.

  (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.

  (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.


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