205AA. Resignation of non-public interest company auditors

Question 1

205AA. Resignation of non-public interest company Auditors

Answer 1

General overview
[205AA.01] Previously, an auditor may resign only when he is not the sole auditor of the company or at the general meeting. This provision makes it difficult for an auditor to resign where the company refuses to hold a general meeting, or appoint a new auditor to replace the outgoing one. This creates hardship on auditors, and the Steering Committee decided to amend s 205(14) to allow an auditor of a non-public interest company to resign before the next AGM: see the Report of the Steering Committee for Review of the Companies Act, April 2011, Chapter 4, paras 71–79. Act No 36 of 2014 introduced ss 205AA–205AF which allow the resignation of auditors in public and non-public interest companies.