Banks Act, 1990 (Act No. 94 of 1990)Chapter V : Functioning of Banks and Controlling Companies with reference to Companies Act61. Appointment of auditor |
| (1) | Notwithstanding the provisions of Part C of Chapter 3 of the Companies Act— |
[Words preceding section 61(1)(a) substituted by section 30(a) of Act No. 22 of 2013]
| (a) | no person shall hold office as auditor of a bank or a controlling company unless appointment of such person as such an auditor has been approved by the Authority; and |
| (b) | any person contemplated in paragraph (a) shall be appointed for such period and on such conditions as may be prescribed. |
[Section 61(1) substituted by section 42(a) of Act No. 19 of 2003]
| (2) | A bank or a controlling company shall within 30 days of the appointment in accordance with the provisions of Part C of Chapter 3 of the Companies Act of a person as auditor thereof, apply to the Authority on the prescribed form for the Authority’s approval of such appointment. |
[Section 61(2) substituted by section 30(b) of Act No. 22 of 2013]
| (3) | The Authority may— |
| (a) | refuse an application under subsection (2) for the Authority’s approval of the appointment of an auditor if— |
| (i) | the application seeks the re-appointment of an auditor who has already served as auditor of the bank in question for the prescribed number of years consecutively; or |
| (ii) | any grounds for withdrawal of approval listed in paragraph (b)(i) to (iv) apply to the proposed appointee; or |
| (b) | withdraw any approval of the appointment of an auditor previously granted by the Authority under this section, if such an auditor— |
| (i) | has been convicted of an offence of which dishonesty is an element; |
| (ii) | is found to be incompetent or unfit to perform the functions of an auditor; |
| (iii) | is under investigation by the Independent Regulatory Board for Auditors; or |
[Section 61(3)(b)(iii) substituted by section 30(c) of Act No. 22 of 2013]
| (iv) | fails to disclose any direct or indirect interests which may constitute a conflict of interest in respect of such auditors duties, |
and thereupon the functions and responsibilities of that auditor in respect of that bank shall cease forthwith.
[Section 61(3) substituted by section 42(c) of Act No. 19 of 2003]
| (4) | If the Authority under paragraph (a) of subsection (3) refuses an application for his or her approval of the appointment of an auditor or under paragraph (b) of that subsection withdraws an approval previously granted by him or her, the board of directors of the bank or the controlling company concerned shall appoint another person as auditor and the provisions of subsections (1) and (2) shall apply mutatis mutandis in respect of the last-mentioned appointment. |
[Section 61(4) substituted by section 42(d) of Act No. 19 of 2003]
| (5) | A person appointed under subsection (4) as auditor of a bank shall for the purposes of Part C of Chapter 3 of the Companies Act be deemed to have been so appointed as auditor at the immediately preceding annual general meeting of the bank. |
[Section 61(5) substituted by section 30(d) of Act No. 22 of 2013]
| (6) | A person appointed under subsection (4) to replace an auditor whose approval has been withdrawn under subsection (3)(b) shall be appointed for the remainder of the period for which the person whom he or she replaces was appointed and is subject to the same conditions as his or her predecessor. |
[Section 61(6) inserted by section 42(e) of Act No. 19 of 2003]