Section 720 of The Companies Act No. 17 of 2015: Members of private company may block automatic re-appointment of auditor
(1) An auditor of a private company is not taken to be re–appointed by theoperation of section 719(2) if the company has received notices under this section from members who hold at least the requisite percentage of the total voting rights of all members who would be entitled to vote on a resolution that the auditor should not be re-appointed.
(2) The "requisite percentage" is five percent or, if a lower percentage isspecified for this purpose in the company's articles, that lower percentage.
(3) A notice under this section may be in hard copy or electronic form but isnot effective unless it is—
(a) authenticated by the person or persons giving it; and
(b) received by the company before the end of the accounting reference period immediately preceding the time when the re-appointment under section 719(2) is taken to have effect.
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