Section 267. Appointment of auditors of private company

(1) A private company shall appoint an auditor for each financial year of the company.

(2) Notwithstanding subsection (1), the Registrar shall have the power to exempt any private company from the requirement stated in that subsection according to the conditions as determined by the Registrar.

(3) The Board shall appoint an auditor of the company—

(a) in the case of newly incorporated companies, at least thirty days before the end of the period for the submission of the first financial statements to the Registrar; or

(b) to fill a casual vacancy in the office of auditor.

(4) The members shall appoint an auditor by ordinary resolution—

(a) in the case of subsequent years following the submission of its first financial statements, during the period for appointing auditors; or

(b) if the Board fails to appoint an auditor under subsection (3).

(5) An auditor of a private company shall only be appointed in accordance with subsection (3) or (4).

(6) For the purposes of subsection (4), the period for appointing auditors means the period of thirty days—

(a) before the end of the period allowed for the lodgement of the previous year financial statements with the Registrar under subsection 259(1); or

(b) if the previous year financial statements were lodged earlier, before the day on which financial statements were lodged with the Registrar.

(7) The company and every director of the company who contravene this section commit an offence.