Special Investigating Units and Special Tribunals Act, 1996
R 385
Companies Act, 1973 (Act No. 61 of 1973)Chapter X: AuditorsRemoval and Resignation of Auditor280. Resignation of auditor |
| 1) | The auditor of a company may at any time during the period of his office resign as such provided the requirements of this section are complied with. |
| 2) | An auditor intending to resign shall deliver to the company and to the Registrar a written notification in the prescribed form to the effect that he or she has no reason to believe that in the conduct of the affairs of the company a reportable irregularity, within the meaning of the Auditing Profession Act, 2005 (Act No. 26 of 2005), has taken place or is taking place which has caused or is likely to cause financial loss to the company or to any of its members or creditors, other than an irregularity (if any) which has been reported to the Regulatory Board under that Act, and it shall not be necessary that such an auditor shall have carried out, for the purposes of such notification, a special audit subsequent to the date up to which the last annual financial statements on which he or she has already reported, were made up. |
| 3) | The directors of the company shall forthwith upon receipt of the said written notification appoint an auditor in accordance with section 273 to fill the vacancy and shall lodge the said notification together with the return required under section 276 with the Registrar. |
| 4) | The resignation of an auditor shall become effective upon the receipt by the Registrar of the written notification referred to in subsection (2). |
| 5) | If the directors fail to appoint an auditor to fill the vacancy within three months after the receipt of the written notification referred to in subsection (2), any person who- |
| a) | at the expiration of that period of three months was a director of the company; and |
| b) | was aware of the vacancy but failed to take all reasonable steps to ensure that it would be filled in accordance with subsection 3, |
shall together with the company be jointly and severally liable for all debts incurred by the company during the existence of the vacancy.
