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Companies Act, 1973 (Act No. 61 of 1973)

Chapter X: Auditors

Appointment

273. Filling of casual vacancies

 

 

1) Subject to the provisions of section 280, a casual vacancy in the office of auditor of a company-
a) shall, if such auditor be the only incumbent, be filled by the directors within thirty days, and the provisions of section 271 shall mutatis mutandis apply in regard to the filling of such vacancy and the duty of the company; or
b) may, if there be more than one incumbent, be filled by the directors, but while any such vacancy continues, the surviving or continuing auditor shall act as auditor of the company.

 

2) If a vacancy arises in the office of auditor of a widely held company during the tenure of an audit committee, subsection (1) does not apply and the directors shall within 21 days propose to the audit committee a registered auditor to be appointed as the new auditor.

 

3) If, in a case contemplated in subsection (2), the former designated auditor was a member of a firm and the firm itself is not disqualified or removed, only another member of the firm may be proposed to the audit committee to be the new designated auditor.

 

4) If, within 10 days of the making of a proposal to an audit committee under subsection (2), the audit committee does not give notice in writing to the directors rejecting the proposed auditor, the directors shall proceed to the appointment, either by appointing the auditor or, as the case may require, by selecting the new designated auditor.

 

5) In this Chapter "designated auditor" means the individual contemplated in subsection 274(3).