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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 858

Removal and resignation of auditors

(1) A licensee:

must 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

may, with ASIC's consent, remove an auditor of the licensee from office.

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

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

the auditor has received the consent of ASIC.

(3) ASIC must, 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. (4) A statement by an auditor in an application under subsection (2) or in answer to an inquiry by ASIC relating to the reasons for the application:

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

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 ASIC that the statement was made in the application or in answer to an inquiry by ASIC is conclusive evidence that the statement was so made.

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

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

the date on which ASIC gives its consent to the resignation; or

the date (if any) fixed by ASIC for the purpose;

whichever last occurs.

(6) 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 is, if not disqualified from acting as auditor of the holder, taken to be the auditor of the holder until the member obtains the consent of ASIC to the retirement or withdrawal. (7) This section does not apply in relation to a body corporate (except a proprietary company) in relation to which section 329 applies.

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