Appointment to replace auditor removed from office
327D Appointment to replace auditor removed from office
This section deals with the situation in which an auditor of a company is removed from office at a general meeting in accordance with section 329.
The company may at that general meeting (without adjournment), by special resolution immediately appoint an individual, firm or company as auditor of the company if a copy of the notice of nomination has been sent to the individual, firm or company under subsection 328B(3).
If a special resolution under subsection (2):
is not passed; or
could not be passed merely because a copy of the notice of nomination has not been sent to an individual, firm or company under subsection 328B(3);
the general meeting may be adjourned and the company may, at the adjourned meeting, by ordinary resolution appoint an individual, firm or company as auditor of the company if:
a member of the company gives the company notice of the nomination of the individual, firm or company for appointment as auditor; and
the company receives the notice at least 14 clear days before the day to which the meeting is adjourned.
The day to which the meeting is adjourned must be:
not earlier than 20 days after the day of the meeting; and
not later than 30 days after the day of the meeting.
Subject to this Part, an auditor appointed under subsection (2) or (3) holds office until the company’s next AGM.
This Act’s bill:Explanatory memorandumSecond reading speech
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