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Companies Act 1993

Accounting records and financial reporting - Miscellaneous auditing provisions

207V: Auditor not seeking reappointment or resigning

You could also call this:

“Auditor's steps for leaving or not continuing the job”

If you’re an auditor for a company and you don’t want to be hired again or you want to quit, you need to tell the company’s board in writing. After you do this, you can ask the board to do one of two things. They can either send all the shareholders a written explanation of why you don’t want to work for the company anymore, or they can let you (or someone speaking for you) explain your reasons at a meeting with the shareholders. The company has to do whichever one of these you ask for. If you choose to have your reasons sent out in writing, the company has to pay for this. If you go to a meeting to explain, the company has to pay you a fair amount for your time and any costs you have.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6041597.

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Part 11 Accounting records and financial reporting
Miscellaneous auditing provisions

207VAuditor not seeking reappointment or resigning

  1. If an auditor gives the board of a company written notice that the auditor does not wish to be reappointed or of the auditor's resignation, the board must, if requested to do so by that auditor,—

  2. distribute, as soon as practicable, to all shareholders, at the expense of the company, a written statement of the auditor's reasons for the auditor's wish not to be reappointed or for the auditor's resignation; or
    1. permit the auditor or the auditor's representative to explain at a shareholders' meeting the reasons for wishing not to be reappointed or for resigning.

      1. An auditor is entitled to be paid by the company reasonable fees and expenses for making the representations to shareholders.

      Notes
      • Section 207V: inserted, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).