sec.20Report of auditor to be laid before Minister in certain cases

### sec.20 Report of auditor to be laid before Minister in certain cases If after considering an auditor’s report given under section 16 (1) , 16 (9) or 17 in relation to a trustee, the supervising entity is satisfied that the financial position of the trustee does not allow the trustee to meet all the trustee’s commitments as a trustee, the supervising entity must give to the Minister a copy of the report with any further report on it the supervising entity considers appropriate to make. Subsection (1) does not limit the circumstances in which the supervising entity may give to the Minister a copy of an auditor’s report. It is a lawful excuse for the publication of any defamatory statement made in a report by an auditor under section 15 (10) , 16 (1) or (9) , 17 , 19 or 23 or in any report or further report by an inspector under section 26A , or by the supervising entity made under subsection (1) or in any explanation by a trustee as a result of an inquiry by the supervising entity in relation to a report by an auditor under section 15 (10) if the publication is made in good faith and is made for the purposes of this Act or purports to be so made. For the purposes of subsection (2) — a publication is said to be made in good faith if— the matter published is relevant to an examination and audit or a report or further report under, or in pursuance of, this Act; and the manner and extent of the publication does not exceed what is reasonably sufficient for the occasion; and the person by whom it is made is not actuated by ill will to the person defamed or by any other improper motive, and does not believe the defamatory matter to be untrue; and when any question arises whether a publication was or was not made in good faith, the burden of proof of the absence of good faith lies upon the party alleging such absence. Where the supervising entity has received a report referred to in subsection (1) , the supervising entity may, with the consent of the Minister, take possession of the accounting and other records relating to trust moneys of the trustee and where the trustee carries on practice or business in partnership, of the firm. Upon request by the supervising entity, or a person authorised by the supervising entity in writing in that behalf, the trustee and, where the trustee carries on practice or business in partnership, the other members of the partnership and the trustee’s employees and agents and, where the trustee carries on practice or business in partnership, any of the firm’s employees and agents shall produce the accounting and other records relating to trust moneys held by the trustee relating to the trustee’s practice or business or, where the trustee carries on practice or business in partnership, held by the firm relating to its practice or business. Maximum penalty—100 penalty units or 1 year’s imprisonment. The supervising entity may retain possession of the accounting and other records of which the supervising entity has taken possession under subsection (4) for such period as the supervising entity considers reasonably necessary for the purposes of the investigation of matters contained in or arising out of a report referred to in subsection (1) and during that period the supervising entity shall permit a person who would be entitled to inspect the records if they were not in the possession of the supervising entity to inspect at all reasonable times such of the records as that person would be so entitled to inspect. s 20 amd 1974 No. 22 s 5 ; 1990 No. 80 s 3 sch 1 ; 1990 No. 85 s 5 sch 2 ; R1 (see RA s 39 ); 1995 No. 58 s 4 sch 1 ; 1997 No. 55 s 18 (sec.20-ssec.1) If after considering an auditor’s report given under section 16 (1) , 16 (9) or 17 in relation to a trustee, the supervising entity is satisfied that the financial position of the trustee does not allow the trustee to meet all the trustee’s commitments as a trustee, the supervising entity must give to the Minister a copy of the report with any further report on it the supervising entity considers appropriate to make. (sec.20-ssec.1A) Subsection (1) does not limit the circumstances in which the supervising entity may give to the Minister a copy of an auditor’s report. (sec.20-ssec.2) It is a lawful excuse for the publication of any defamatory statement made in a report by an auditor under section 15 (10) , 16 (1) or (9) , 17 , 19 or 23 or in any report or further report by an inspector under section 26A , or by the supervising entity made under subsection (1) or in any explanation by a trustee as a result of an inquiry by the supervising entity in relation to a report by an auditor under section 15 (10) if the publication is made in good faith and is made for the purposes of this Act or purports to be so made. (sec.20-ssec.3) For the purposes of subsection (2) — a publication is said to be made in good faith if— the matter published is relevant to an examination and audit or a report or further report under, or in pursuance of, this Act; and the manner and extent of the publication does not exceed what is reasonably sufficient for the occasion; and the person by whom it is made is not actuated by ill will to the person defamed or by any other improper motive, and does not believe the defamatory matter to be untrue; and when any question arises whether a publication was or was not made in good faith, the burden of proof of the absence of good faith lies upon the party alleging such absence. (sec.20-ssec.4) Where the supervising entity has received a report referred to in subsection (1) , the supervising entity may, with the consent of the Minister, take possession of the accounting and other records relating to trust moneys of the trustee and where the trustee carries on practice or business in partnership, of the firm. (sec.20-ssec.5) Upon request by the supervising entity, or a person authorised by the supervising entity in writing in that behalf, the trustee and, where the trustee carries on practice or business in partnership, the other members of the partnership and the trustee’s employees and agents and, where the trustee carries on practice or business in partnership, any of the firm’s employees and agents shall produce the accounting and other records relating to trust moneys held by the trustee relating to the trustee’s practice or business or, where the trustee carries on practice or business in partnership, held by the firm relating to its practice or business. Maximum penalty—100 penalty units or 1 year’s imprisonment. (sec.20-ssec.6) The supervising entity may retain possession of the accounting and other records of which the supervising entity has taken possession under subsection (4) for such period as the supervising entity considers reasonably necessary for the purposes of the investigation of matters contained in or arising out of a report referred to in subsection (1) and during that period the supervising entity shall permit a person who would be entitled to inspect the records if they were not in the possession of the supervising entity to inspect at all reasonable times such of the records as that person would be so entitled to inspect. - (a) a publication is said to be made in good faith if— (i) the matter published is relevant to an examination and audit or a report or further report under, or in pursuance of, this Act; and (ii) the manner and extent of the publication does not exceed what is reasonably sufficient for the occasion; and (iii) the person by whom it is made is not actuated by ill will to the person defamed or by any other improper motive, and does not believe the defamatory matter to be untrue; and - (i) the matter published is relevant to an examination and audit or a report or further report under, or in pursuance of, this Act; and - (ii) the manner and extent of the publication does not exceed what is reasonably sufficient for the occasion; and - (iii) the person by whom it is made is not actuated by ill will to the person defamed or by any other improper motive, and does not believe the defamatory matter to be untrue; and - (b) when any question arises whether a publication was or was not made in good faith, the burden of proof of the absence of good faith lies upon the party alleging such absence. - (i) the matter published is relevant to an examination and audit or a report or further report under, or in pursuance of, this Act; and - (ii) the manner and extent of the publication does not exceed what is reasonably sufficient for the occasion; and - (iii) the person by whom it is made is not actuated by ill will to the person defamed or by any other improper motive, and does not believe the defamatory matter to be untrue; and