Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 858

858. (1) It is a condition of a licence that the licensee:

   (a)  shall 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

   (b)  may, with the Commission'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:

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

   (b)  the auditor has received the consent of the Commission.

(3) The Commission shall, 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 the Commission relating to the reasons for the
application:

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

   (b)  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 the Commission that the statement was
        made in the application or in answer to an inquiry by the Commission
        is conclusive evidence that the statement was so made.

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

   (a)  the date (if any) specified for the purpose in the notice of
        resignation; (b) the date on which the Commission gives its consent to
        the resignation; or (c) the date (if any) fixed by the Commission 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
shall, if not disqualified from acting as auditor of the holder, be deemed to
be the auditor of the holder until the member obtains the consent of the
Commission to the retirement or withdrawal.

(7) This section does not apply in relation to a body corporate (other than an
exempt proprietary company) in relation to which section 329 applies.