Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, a company may appoint an individual, firm or company as auditor of the company at its AGM only if a member of the company gives the company written notice of the nomination of the individual, firm or company for appointment as auditor:
(a) before the meeting was convened; or
(b) not less than 21 days before the meeting.
This subsection does not apply if an auditor is removed from office at the AGM.
(2) If a company purports to appoint an individual, firm or company as auditor of the company in contravention of subsection (1):
(a) the purported appointment is of no effect; and
(b) the company and any officer of the company who is in default are each guilty of an offence.
Note: An officer of a company is in default if the officer is involved in the company's contravention of subsection (1): see the definitions of in default and involved in section 9.
(3) If a member gives a company notice of the nomination of an individual, firm or company for appointment as auditor of the company, the company must send a copy of the notice to:
(a) each individual, firm or company nominated; and
(b) each auditor of the company; and
(c) each person entitled to receive notice of general meetings of the company.
This is so whether the appointment is to be made at a meeting or an adjourned meeting referred to in section 327D or at an AGM.
(4) The copy of the notice of nomination must be sent:
(a) not less than 7 days before the meeting; or
(b) at the time notice of the meeting is given.