1964_COMPANIES_ORDINANCE — Page 26

136

CAP. 32]

Disqualifications for appointment as auditor.

[cf. 1948 c. 38, s. 161; 1967 c. 81, s. 13.]

(Cap. 50.)

6 of 1984.) [*31 884]

Companies

[1984 Ed.

(2) This section applies to any statement made to the auditors of the company (whether orally or in writing) which conveys, or purports to convey, any information or explanation which they require, or are entitled to require, as auditors of the company.

( Added, 6 of 1984, s. 93 )

135-139. [Repealed, 68 of 1972, s. 52]

140. (1) A person shall not be appointed as auditor of a company unless-

(a) he is qualified for appointment as such auditor under the

Professional Accountants Ordinance; and

(b) he is not disqualified under subsection (2).

(2) None of the following persons shall be qualified for appointment as auditor of a company--

(a) an officer or servant of the company;

(b) a person who is a partner of or in the employment of an

officer or servant of the company;

(c) a body corporate:

(d) a person who is, by virtue of paragraph (a), (b) or (c), disqualified for appointment as auditor of any other body corporate which is the company's subsidiary or holding company or a subsidiary of the company's holding com- pany, or would be so disqualified if the body corporate were a company,

and references in this subsection to an officer or servant shall be construed as not including references to an auditor.

(3) A person shall not be disqualified by virtue of subsec- tion (2)(h) or (d) for appointment as auditor of a company at any time during the period of 3 years beginning on the day* on which the Companies (Amendment) Ordinance 1984 comes into operation if-

(a) on that day, the company is a private company and he is a

duly appointed auditor thereof:

(b) at the time of his appointment, no shares or debentures of the company, or of a body corporate of which it is a subsidiary, have been listed on a stock exchange (whether in Hong Kong or elsewhere) or offered (whether in Hong Kong or elsewhere) to the public for subscription or purchase; and

(c) he would not, but for subsection (2)(h), be disqualified for appointment as such auditor by virtue of subsection (2)(d).

(4) Any person appointed as auditor of a company who ceases to be qualified, or who becomes disqualified, for appointment as auditor of the company before the period of his appointment expires shall forthwith vacate his office as such auditor.