COMPANIES ACT - 1963 (ACT 179)

    Section - 296 - Qualification of Auditors of a Public Company

    (1) A person shall not be qualified for appointment as auditor of a public company notwithstanding that he may have been appointed auditor thereof while it was a private company, unless he is, under the Chartered Accountants Act, 1963 (Act 170) a member of the Institute of Chartered Accountants; and is not disqualified under subsection (2) of this section.

    (2) The following persons shall be disqualified for appointment as auditor of a public company, namely,

    (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 instrument of the Registrar under subsection (3) of this section:

    Provided that nothing contained in paragraph (b) of this subsection shall disqualify 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 of any associated company.

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

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

    (5) Any person not qualified for appointment as auditor who shall act as auditor of a public 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 like fine.