COMPANIES ACT - 1963 (ACT 179)

    Section - 270 - Qualification of Auditors of Private Companies

    (1) A person shall not be qualified for appointment as auditor of a private company unless,

    (a) he is, under the Chartered Accountants Act, 1963 (Act 170), a member of the Institute of Chartered Accountants, or

    (b) he is a practising accountant within the meaning of the said Act, and is not disqualified under subsection (3) of this section.

    (2) If at any time within ten years from the commencement of this Code the Registrar is satisfied that the provisions of subsection (1) of this section have become or are about to become unworkable by reason of the shortage in Ghana of persons with the requisite qualifications, he may, by legislative instrument suspend the operation of the said subsection (1) for such period or periods, not exceeding in all a total period of five years, as he shall think fit, and so long as such suspension is in operation any person shall be qualified to be appointed auditor of a private company unless disqualified under subsection (3) of this section.

    (3) The following persons shall be disqualified for appointment as auditor of a private company, that is to say,

    (a) an officer of the company or of any associated company;

    (b) a person who is a partner of or in the employment of an officer of the company or of any associated company;

    (c) an infant;

    (d) any person found by a competent court to be a person of unsound mind;

    (e) a body corporate, except that members of an incorporated partnership may be appointed in the manner provided by subsection (2) of section 134 of this Code;

    (f) any one in respect of whom an order shall have been made under section 186 of this Code so long as such order remains in force unless leave to act as auditor of the company concerned has been given by the Court in accordance with that section;

    (g) an undischarged bankrupt, unless he shall have been granted leave to act as auditor of the company concerned by the court by which he was adjudged bankrupt;

    (h) a person who is for the time being disqualified from acting as auditor of a company by order of the Registrar under subsection (4) of this section:

    Provided that nothing contained in paragraph (b) of this subsection shall disqualify,

    (a) a person from being appointed as auditor by reason only of the fact that he is a partner or in the employment of a person acting as secretary or registration officer of the company or any associated company;

    (b) any person who, prior to the sixth day of April, 1961, was acting as auditor of a company from continuing to act or to be appointed as auditor of that company.

    (4) The Registrar may, on cause being shown, by legislative instrument disqualify any person otherwise qualified from acting as auditor of any private company and may at any time remove such disqualification.

    (5) From any instrument of the Registrar disqualifying any person or refusing to remove the disqualification there shall be a right to appeal to the Court.

    (6) Any person not qualified for appointment as auditor who shall act as auditor of a private company shall be liable to a fine not exceeding five hundred pounds and the company by whom he is appointed and every officer thereof who is in default shall be liable to a fine not exceeding five hundred pounds.