Section 269. Term of office of auditors of private company

(1) An auditor of a private company shall hold office in accordance with the terms of his appointment, provided that—

(a) he does not take office until the previous auditor cease to hold office, unless he is the first auditor of the company; and

(b) he ceases to hold office thirty days from the circulation of the financial statements to the members unless he is re-appointed.

(2) Notwithstanding paragraph (1)(a), an auditor may take office before the previous auditor ceases office in the following circumstances:

(a) where the previous auditor is not the sole auditor; or

(b) where he is appointed as an additional auditor.

(3) Where the office of an auditor becomes vacant under paragraph (1)(b) and no auditor has been appointed by members of the company, the auditor who holds office immediately before the vacancy shall be deemed to be re-appointed, unless—

(a) he was appointed by the Board;

(b) the constitution require actual re-appointment;

(c) the deemed re-appointment is prevented by the members under section 270; or

(d) the members have resolved that he should not be reappointed.

(4) Subsection (3) is without prejudice to the provisions of this Subdivision as to removal and resignation of auditors.