Companies Act, 1973 (Act No. 61 of 1973)Chapter X: AuditorsAppointment275. Disqualification for appointment as auditor |
| 1) | No person shall be qualified for appointment as auditor of a company if he is- |
| b) | a director, officer or employee of any company performing secretarial work for the company; |
| c) | a partner or employer or employee of a director or an officer of the company; |
| d) | a person who by himself or his partner or employee habitually or regularly performs the duties of secretary or bookkeeper of the company; |
| e) | [Paragraph (e) deleted by section 28 (1) of Act No. 80 of 1991] |
| f) | a person who at any time during the financial year was a director or officer of the company; or |
| g) | [Paragraph (g) deleted by the Corporate Laws Amendment Act No. 24 of 2006] |
| 2) | Any person who in terms or subsection (1) is disqualified for appointment as the auditor of a company shall likewise be disqualified for appointment as the auditor of any other body corporate which is a subsidiary or holding company of that company or is a subsidiary of such holding company, or would be so disqualified if such body corporate were a company. |
| 3) | The provisions of subsection (1) shall not be construed as prohibiting the appointment as auditor of a private company no shares of which are held by a public company, of a person who by himself or herself or his or her partner or employee habitually or regularly performs the duties of secretary or bookkeeper of such private company if he or she is registered with the Regulatory Board, and all the shareholders of such private company agree in writing to his or her appointment and the relevant circumstances are set out in the auditor's report on the affairs and annual financial statements of such private company. |
| 4) | Any person who acts as the auditor of a company or other body corporate, while disqualified as aforesaid, shall be guilty of an offence. |
| 5) | For the purposes of this section "secretarial work" does not include share transfer secretarial work. |