138
CAP. 32]
Companies
[1984 Ed.
Right of auditor who resigns to requisition meeting of company, etc. 1976 c. 69, s. 17.
(a) on conviction upon indictment to a fine of $50,000 and, in the case of an individual, to imprisonment for 2 years; and
(b) on summary conviction to a fine of $10,000 and, in the case of an individual, to imprisonment for 6 months.
(Added, 6 of 1984, s. 95)
140B. (1) Where an auditor's notice of resignation contains a statement under section 140A(2)(b), there may be deposited with the notice a requisition signed by the auditor calling on the directors of the company forthwith duly to convene an extraordinary general meeting of the company for the purpose of receiving and considering such explanation of the circumstances connected with his resignation as he may wish to place before the meeting.
(2) Where an auditor's notice of resignation contains any such statement as aforesaid and the auditor requests the company to circulate to its members---
(a) before the general meeting at which his term of office would otherwise have expired; or
(b) before any general meeting at which it is proposed to fill the vacancy caused by his resignation or convened on his requisition,
a statement in writing (not exceeding a reasonable length) of the circumstances connected with his resignation, the company shall (unless the statement is received by it too late for it to do so)-----
(i) in any notice of the meeting given to members of the company state the fact of the statement having been made; and
(ii) send a copy of the statement to every member of the company to whom notice of the meeting is or has been sent.
(3) If the directors do not within 21 days from the date of the deposit of a requisition under this section proceed duly to convene a meeting for a day not more than 28 days after the date on which the notice convening the meeting is given, every director who failed to take all reasonable steps to secure that a meeting was convened as mentioned above shall be guilty of an offence and liable
(a) on conviction upon indictment to a fine of $50,000 and to imprisonment for 2 years; and
(b) on summary conviction to a fine of $10,000 and to imprisonment for 6 months,
and if a copy of any such statement as is mentioned in subsection (2) is not sent out as required by that subsection because received too late or because of the company's default, the auditor may (without prejudice to his right to be heard orally) require that the statement shall be read out at the meeting.