Annual appointment at annual general meeting of auditor of large co‑operative to fill vacancy
300 Annual appointment at annual general meeting of auditor of large co‑operative to fill vacancy
Large co‑operative required to appoint auditor (cf Corporations Act section 327B(1))
A large co‑operative must—
appoint an auditor of the co‑operative at its first annual general meeting; and
appoint an auditor of the co‑operative to fill any vacancy in the office of auditor at each subsequent annual general meeting.
Maximum penalty: $2 500.
Tenure of auditor (cf Corporations Act section 327B(2))
An auditor appointed under subsection (1) holds office until the auditor—
dies; or
is removed, or resigns, from office in accordance with section 310; or
ceases to be capable of acting as auditor because of Division 2 of Part 2M.4 of the Corporations Act as applying under this Part; or
ceases to be auditor under subsection (3), (4) or (5).
Termination of appointment of individual auditor (cf Corporations Act section 327B(2A))
An individual auditor ceases to be auditor of a large co‑operative under this subsection if—
on a particular day (the start day), the individual auditor—
informs the Registrar of a conflict of interest situation in relation to the co‑operative under section 324CA(1A) of the Corporations Act as applying under this Part; or
informs the Registrar of particular circumstances in relation to the co‑operative under section 324CE(1A) of the Corporations Act as applying under this Part; and
the individual auditor does not give the Registrar a notice, before the notification day (see subsection (6)), 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 the Registrar approves in writing, from the start day.
Termination of appointment of audit firm (cf Corporations Act section 327B(2B))
An audit firm ceases to be auditor of a large co‑operative under this subsection if—
on a particular day (the start day), the Registrar is—
informed of a conflict of interest situation in relation to the co‑operative under section 324CB(1A) of the Corporations Act as applying under this Part; or
informed of particular circumstances in relation to the co‑operative under section 324CF(1A) of the Corporations Act as applying under this Part; and
the Registrar has not been given a notice on behalf of the audit firm, before the notification day (see subsection (6)), 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 the Registrar approves in writing, from the start day.
Termination of appointment of audit company (cf Corporations Act section 327B(2C))
An audit company ceases to be auditor of a large co‑operative under this subsection if—
on a particular day (the start day), the Registrar is—
informed of a conflict of interest situation in relation to the co‑operative under section 324CB(1A) or 324CC(1A) of the Corporations Act as applying under this Part; or
informed of particular circumstances in relation to the co‑operative under section 324CF(1A) or 324CG(1A) or (5A) of the Corporations Act as applying under this Part; and
the Registrar has not been given a notice on behalf of the audit company, before the notification day (see subsection (6)), 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 the Registrar approves in writing, from the start day.
Meaning of notification day (cf Corporations Act section 327B(2D))
The notification day is—
the last day of the remedial period; or
such later day as the Registrar approves in writing (whether before or after the remedial period ends).
Compliance with requirement to appoint auditor (cf Corporations Act section 327B(3))
A director of a large co‑operative must take all reasonable steps to comply with, or to secure compliance with, subsection (1).
Maximum penalty: $2 500 or imprisonment for 6 months, or both.
Member of audit firm ceases to be auditor when firm ceases to be auditor (cf Corporations Act section 327B(4))
If an audit firm ceases to be the auditor of a large co‑operative under subsection (2) at a particular time, each member of the firm who—
is taken to have been appointed as an auditor of the co‑operative under section 324AB(1) or 324AC(4) of the Corporations Act as applying under this Part; and
is an auditor of the co‑operative immediately before that time, ceases to be an auditor of the co‑operative at that time.
This Act’s bill:Second reading speech
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