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Building Societies Act 1965

Management and administration - Accounting records and financial reporting

98: Appointment of auditors

You could also call this:

"Choosing people to check your society's money every year"

You need to choose an auditor or auditors every year at your yearly big meeting. These auditors will work for you until the next yearly big meeting.

If an auditor is finishing their job, they will usually keep working for you unless:

  • They can't do the job anymore
  • You choose someone else instead
  • They tell you they don't want to do it anymore

If you're trying to choose a new person but can't because something happened to them, the old auditor won't automatically keep working for you.

When you first start your society, you can choose auditors in a few ways:

  • The directors can pick them before your first big yearly meeting
  • You can remove the auditors the directors chose and pick new ones at a meeting if someone suggests new people at least 14 days before
  • If the directors don't choose anyone, you can pick the first auditors at a meeting

If an auditor stops working for you suddenly, the directors can choose a new one. If there's more than one auditor, the others can keep working while you find a new one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM372070.

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Part 7Management and administration
Accounting records and financial reporting

98Appointment of auditors

  1. Every society shall at each annual general meeting appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting.

  2. Repealed

  3. Repealed

  4. At any annual general meeting a retiring auditor, however appointed, shall be reappointed without any resolution being passed unless—

  5. he is not qualified for reappointment; or
    1. a resolution has been passed at that meeting appointing somebody instead of him or her or providing expressly that he or she shall not be reappointed; or
      1. he has given to the society notice in writing of his or her unwillingness to be reappointed:
          1. provided that where notice is given of an intended resolution to appoint some person or persons in place of a retiring auditor, and by reason of the death, incapacity, or disqualification of that person or of those persons, as the case may be, the resolution cannot be proceeded with, the retiring auditor shall not be automatically reappointed by virtue of this subsection.

        1. With respect to the first auditors of a society, the following provisions shall apply:

        2. they may be appointed by the directors at any time before the first annual general meeting; and, subject to paragraph (b), auditors so appointed shall hold office until the conclusion of that meeting:
          1. subject to section 99, the society may at a general meeting remove any auditors so appointed, and appoint in their place any other persons who have been nominated for appointment by any member of the society and of whose nomination notice has been given to the members of the society not less than 14 days before the date of the meeting:
            1. if the directors fail to exercise their powers under paragraph (a), the society in general meeting may appoint the first auditors, and thereupon the said powers of the directors shall cease.

              1. The directors may fill any casual vacancy in the office of auditor; but while any such vacancy continues the surviving or continuing auditor or auditors, if any, may act.

              Compare
              • Building Societies Act 1962 s 84 (UK)
              Notes
              • Section 98(2): repealed, on , by section 8 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
              • Section 98(2A): repealed, on , by section 8 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).