Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 7 : Audited Reports and Independent Reviewed Reports of Co-operatives50. Appointment and termination of auditor or independent reviewer |
[Section 50 heading substituted by section 38(a) of Notice No. 558, GG 36729, dated 5 August 2013]
| (1) | The members must appoint an auditor or independent reviewer— |
[Words preceding section 50(1)(a) substituted by section 38(b) of Notice No. 558, GG 36729, dated 5 August 2013]
| (a) | at a meeting of interested persons referred to in section 6(3), to hold office until the first annual general meeting; and |
| (b) | at each annual meeting, to hold office until the close of the next annual general meeting. |
| (2) | Despite subsection (1), if an auditor or an independent reviewer is not appointed at any meeting, the previously appointed auditor or independent reviewer will continue in office until a successor is appointed. |
[Section 50(2) substituted by section 38(c) of Notice No. 558, GG 36729, dated 5 August 2013]
| (2A) | The Board must within thirty days of the appointment of an auditor or independent reviewer, notify the registrar of such appointment in the prescribed manner. |
[Section 50(2A) inserted by section 38(d) of Notice No. 558, GG 36729, dated 5 August 2013]
| (3) | If a co-operative fails to appoint either an auditor or an independent reviewer in accordance with subsections (1) and (2), the members of the Board will be subject to a fine imposed by the registrar, which fine may not exceed the amount calculated according to the ratio for one year imprisonment determined in terms of the Adjust of fines Act, 1991 (Act No. 101 of 1991). |
[Section 50(3) substituted by section 38(e) of Notice No. 558, GG 36729, dated 5 August 2013]
| (3A) | If a co-operative bank registered under the Co-operative Bank Act, 2007, fails to appoint an auditor in accordance with subsections (1) and (2), the supervisor of the co-operative bank may appoint the auditor of that co-operative bank. |
[Section 50(3A) inserted by section 90 (item 3(a) of Schedule) of the Co-operative Banks Act, 2007 (Act No. 40 of 2007) Notice No. 217, GG 30802, dated 22 February 2008]
| (4) | The fees payable to the auditor or independent reviewer in terms of subsection (3) must be approved by the registrar. |
[Section 50(4) substituted by section 38(f) of Notice No. 558, GG 36729, dated 5 August 2013]
| (4A) | The fees payable to the auditor of a co-operative bank registered under the Co-operative Banks Act, 2007, must be approved by the registrar with the written concurrence of the supervisor of the co-operative bank. |
[Section 50(4A) inserted by section 90 (item 3(b) of Schedule) of the Co-operative Banks Act, 2007 (Act No. 40 of 2007) Notice No. 217, GG 30802, dated 22 February 2008]
| (5) | An auditor or independent reviewer of a co-operative ceases to hold office when the auditor or independent reviewer dies, resigns or is removed in terms of section 51 or is struck off the roll of auditors in terms of the laws of the Republic or is prohibited by law from registering or re-registering with an accredited professional body. |
[Section 50(5) substituted by section 38(g) of Notice No. 558, GG 36729, dated 5 August 2013]
| (6) | A resignation of an auditor or independent reviewer becomes effective on the date on which a written resignation is received by a co-operative, or on the date specified in the resignation, whichever is later. |
[Section 50(6) substituted by section 38(g) of Notice No. 558, GG 36729, dated 5 August 2013]
| (7) | A vacancy created in terms of sections (5) or (6) must be filled for the remainder of the period of office of the resigning auditor or independent reviewer, within thirty days of the date of the post becoming vacant by the Board, by way of a resolution according to the requirements set out in the constitution of the co-operative: Provided that such resolution must be ratified at the next general meeting held by the co-operative. |
[Section 50(7) inserted by section 38(g) of Notice No. 558, GG 36729, dated 5 August 2013]
| (8) | Nothing in this section prohibits a co-operative which did not appoint an auditor or an independent reviewer, for any reason, from appointing an auditor or an independent reviewer at a general meeting. |
[Section 50(8) inserted by section 38(g) of Notice No. 558, GG 36729, dated 5 August 2013]