SECURITIES INDUSTRY ACT 1980 No. 66, 1980 - SECT 75 Appointment of auditor by dealer

SECURITIES INDUSTRY ACT 1980 No. 66, 1980 - SECT 75

75. (1) Within one month after a person becomes the holder of a dealers
licence he shall appoint a person or persons, a firm or firms, or a person or
persons and a firm or firms, as auditor or auditors to audit his accounts.

(2) A person shall not-

   (a)  consent to be appointed as auditor of a dealer;

   (b)  act as auditor of a dealer; or

   (c)  prepare a report required by this Act to be prepared by an auditor of
        a dealer, if the person-

   (d)  is not a registered company auditor;

   (e)  is indebted in an amount exceeding $2,000 to the dealer; or

   (f)  is a partner or employee of the dealer.

(3) A firm shall not-

   (a)  consent to be appointed as auditor of a dealer;

   (b)  act as auditor of a dealer; or

   (c)  prepare a report required by this Act to be prepared by an auditor of
        a dealer, unless-

   (d)  at least one member of the firm is ordinarily resident in Australia;

   (e)  all the members of the firm ordinarily so resident are registered
        company auditors;

   (f)  no member of the firm is indebted in an amount exceeding $2,000 to the
        dealer; and

   (g)  no member of the firm is a partner or employee of the dealer.

(4) The appointment of a firm as auditor of a dealer shall be taken to be the
appointment of all persons who are members of the firm, whether resident in
Australia or not, at the date of the appointment.

(5) Where a firm has been appointed as auditor of a dealer and the members
constituting the firm change by reason of the death, retirement or withdrawal
of a member or by reason of the admission of a new member, the firm as newly
constituted shall, if it is not disqualified from acting as auditor of the
dealer by virtue of sub-section (3), be deemed to be appointed under
sub-section (1) as auditor of the dealer and that appointment shall be taken
to be an appointment of all persons who are members of the firm as newly
constituted.

(6) If, in contravention of this section, a firm consents to be appointed or
acts as auditor of a dealer or prepares a report required by this Act to be
prepared by an auditor of a dealer, each member of the firm is guilty of an
offence.

(7) A person shall not-

   (a)  if he has been appointed auditor of a dealer-wilfully disqualify
        himself while the appointment continues from acting as auditor of the
        dealer; or

   (b)  if he is a member of a firm that has been appointed auditor of a
        dealer-wilfully disqualify the firm while the appointment continues
        from acting as auditor of the dealer.

(8) An auditor of a dealer shall hold office until death, until removal or
resignation from office in accordance with section 76 or until ceasing to be
capable of acting as auditor by reason of sub-section (2) or (3).

(9) Within 14 days after a vacancy occurs in the office of an auditor of a
dealer, if there is no surviving or continuing auditor of the dealer, the
dealer shall appoint a person or persons, a firm or firms, or a person or
persons and a firm or firms, to fill the vacancy.

(10) While a vacancy in the office of an auditor continues, the surviving or
continuing auditor or auditors (if any) may act.

(11) A dealer shall not appoint a person or firm as auditor of the dealer
unless that person or firm has, before the appointment, consented by notice in
writing given to the dealer to act as auditor and has not withdrawn his or its
consent by notice in writing given to the dealer.

(12) A report or notice made or given by a firm appointed as auditor of a
dealer for the purposes of this Part shall be signed in the firm name and in
his own name by a member of the firm who is a registered company auditor.

(13) Where a person or firm is appointed as an auditor under sub- section (1)
(not being an appointment that is deemed to be made by virtue of sub-section
(5)) or under sub-section (9), the dealer shall within 14 days after the
appointment lodge with the Commission a notice in writing stating that he has
made the appointment and specifying the name of the person or firm.