Application for orders under s 1322 of Corporations Act 2001 (Cth)
Purported appointment of auditor
Failure of company to have the appointment of auditor approved at annual general meeting
Quick Take
1Under s 1322(4)(a) of the Corporations Act, a court may declare valid a purported auditor appointment that failed to comply with s 327B(1)(b) and s 328B where the non-compliance was the product of honest inadvertence, no substantial injustice has been or is likely to be caused, and it is just and equitable that the order be made.
2Prompt action to remedy a discovered non-compliance, including seeking legal advice and commencing curative proceedings, is an indicium of honesty for the purposes of s 1322(6)(a)(ii) of the Corporations Act.
3The absence of any complaint about the auditor's work, any objection to the appointment, or any nomination of an alternative auditor supports a finding that no substantial injustice has been or is likely to be caused under s 1322(6)(c).
