304Registrar may appoint auditor if auditor removed but not replaced

304 Registrar may appoint auditor if auditor removed but not replaced

304 Registrar may appoint auditor if auditor removed but not replaced

(cf Corporations Act s 327E)

(1) This section deals with the situation in which a large co-operative fails to appoint an auditor under section 302 (2) or (3) (the auditor replacement failure).

(2) The co-operative must give the Registrar written notice of the auditor replacement failure within the period of 7 days commencing on the day of the auditor replacement failure (the notification period).

(3) If the co-operative gives the Registrar the notice required by subsection (2), the Registrar must appoint an auditor of the co-operative as soon as practicable after receiving the notice. This subsection has effect subject to section 306.

(4) If the co-operative does not give the Registrar the notice required by subsection (2), the Registrar may appoint an auditor of the co-operative at any time—

(a) after the end of the notification period; and

(b) before the Registrar receives notice of the auditor replacement failure from the co-operative.

This subsection has effect subject to section 306.

(5) If the co-operative—

(a) does not give the Registrar the notice required by subsection (2); and

(b) gives the Registrar notice of the auditor replacement failure after the end of the notification period;

the Registrar must appoint an auditor of the co-operative as soon as practicable after receiving the notice. This subsection has effect subject to section 306.

(6) Subject to this Part, an auditor appointed under this section holds office until the co-operative’s next annual general meeting.