s 81ZH Auditors of approved holding companies — appointment and duties
81ZH.—(1) Despite any other provision of this Act or any other written law, every approved holding company must —(a) on an annual basis, appoint an auditor and obtain the approval of the Authority to such appointment; and (b) where, for any reason, the auditor ceases to act for the approved holding company, as soon as practicable thereafter, appoint another auditor and obtain the approval of the Authority to such appointment. (2) An auditor must not be approved by the Authority as an auditor for an approved holding company unless the auditor is able to comply with such conditions in relation to the discharge of an auditor’s duties as the Authority may determine. (3) The Authority may appoint an auditor for an approved holding company if —(a) the approved holding company fails to appoint an auditor in accordance with subsection (1); or (b) the Authority considers it desirable that another auditor should act with an auditor for the approved holding company appointed under subsection (1), and may at any time fix the remuneration to be paid by the approved holding company to that auditor. (4) The duties of an auditor appointed under subsections (1) and (3) are —(a) to carry out, for the year in respect of which the auditor is appointed, an audit of the accounts of the approved holding company; and (b) to make a report in respect of the latest financial statements of the approved holding company or, where the approved holding company is a parent company for which consolidated financial statements are prepared, the consolidated financial statements, in accordance with section 207 of the Companies Act 1967. (5) The Authority may, by written notice, impose all or any of the following duties on an auditor in addition to those in subsection (4):(a) a duty to submit to the Authority such additional information in relation to the auditor’s audit as the Authority considers necessary; (b) a duty to enlarge or extend the scope of the auditor’s audit of the business and affairs of the approved holding company; (c) a duty to carry out any other examination or establish any procedure in any particular case; (d) a duty to submit to the Authority a report on any of the matters mentioned in paragraphs (b) and (c). (6) An auditor to whom a notice is given under subsection (5) must comply with each direction specified in the notice. (7) The approved holding company must remunerate the auditor in respect of the discharge by the auditor of the duties mentioned in subsection (5). (8) Despite any other provision of this Act or the provisions of the Companies Act 1967, the Authority may, if it is not satisfied with the performance of any duty by an auditor of an approved holding company, at any time —(a) direct the approved holding company to remove the auditor; and (b) direct the approved holding company to appoint another auditor approved by the Authority, as soon as practicable after the removal, and the approved holding company must comply with such direction. (9) If an auditor discloses in good faith to the Authority any information mentioned in subsection (5)(a) or report mentioned in subsection (5)(d), the disclosure is not to be treated as a breach of any restriction on the disclosure imposed by any law, contract or rules of professional conduct, and the auditor is not liable for any loss arising from the disclosure or any act or omission as a result of the disclosure. (10) An approved holding company that contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. (11) An approved holding company that fails to comply with a direction under subsection (8) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction. (12) Any auditor who fails to carry out any duty mentioned in subsection (4), or who fails to comply with subsection (6), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.[Act 12 of 2024 wef 24/01/2025]