Companies Act, 1973 (Act No. 61 of 1973)Chapter X: AuditorsAppointment271. Where meeting fails to appoint auditor, and notice to Registrar |
| 1) | Where at an annual general meeting of a company no auditor is appointed or reappointed, the directors shall, within thirty days as from the date of the meeting, appoint a person or persons to fill the vacancy, and if they fail to do so, the Registrar may at any time do so. |
| 2) | The company shall and any director may, if the directors fail to appoint an auditor as provided in subsection (1), within seven days after the expiration of the period mentioned in the said subsection, lodge with the Registrar a notice in the prescribed form to that effect. |
| 3) | Any company which fails, and any director or officer of such company who knowingly fails, to comply with the provisions of subsection (2), shall be guilty of an offence. |
| 4) | In the case of a widely held company with an audit committee, an appointment by the directors in terms of subsection (1) shall only be valid if the audit committee is satisfied that the auditor is independent of the company. |