Section 773 of The Companies Act No. 17 of 2015: Ineligible person prohibited from acting as a statutory auditor
(1) A person shall not act as a statutory auditor of a company, or of a body of a kind prescribed by the regulations for the purposes of this section, unless the person is eligible for appointment as such.
(2) A statutory auditor who, at any time during the auditor's term of office, becomes ineligible for appointment as such, shall immediately—
(a) resign from office; and
(b) give notice to the audited person that the auditor has resigned as a result of having become ineligible for appointment.
(3) A person who—
(a) acts as a statutory auditor in contravention of subsection (1); or
(b) fails to give the notice referred to in subsection (2)(b), commits an offence and is liable on conviction to a fine not exceeding one million shillings and to imprisonment for a term not exceeding two years, or to both.
(4) A person who, having been convicted of an offence under subsection (3)(a),continues to act as a statutory auditor in contravention of subsection (1) commits a further offence.
(5) A person who, having been convicted of an offence under subsection (3) (b), continues to fail to give the notice as required under subsection (2)(b) commits a further offence.
(6) A person who is found guilty of an offence under subsection (4) or (5) is liable on conviction to a fine not exceeding one million shillings.
Enhance Your Research with Bookmarks and Annotations
Here's how you can use these features:
- To bookmark this page, click the "Bookmark this Page" button below the document title.
- To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
- These features are great for organizing your research and keeping track of key information.
- You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.
- Section 774 - Statutory auditor to be independent
(1) A person may not act as statutory auditor of an audited company if the person is—
(a) an officer or employee of the audited company;
(b) a partner or employee of the audited company, or a...
- Section 775 - Effect of lack of independence of statutory auditor
(1) If, at any time during the statutory auditor’s term of office, the auditor becomes prohibited from acting as such by section 774(1), the auditor shall immediately—
(a) resign from office;...
- Section 776 - Effect of appointment of a partnership as statutory auditor
(1) If a partnership is appointed as statutory auditor of an audited person, the appointment is, unless a contrary intention appears, an appointment of the partnership as such and not of the...
- Section 777 - Appropriate qualifications for appointment as a statutory auditor
A person holds an appropriate qualification for the purposes of this Part if the person holds a practising certificate issued under section 21 of the Accountants Act (No. 15 of 2008).
- Section 778 - Power of Cabinet Secretary to recognise qualifications of foreign auditors for purposes of this Act
(1) The Cabinet Secretary may, on the recommendation of the Institute of Certified Public Accountants of Kenya, by notice published in the Gazette, declare that persons of the following classes are to...
- Section 779 - Cabinet Secretary’s power to require eligible person to provide certain information
(1) The Cabinet Secretary may, by notice, require a person eligible forappointment as a statutory auditor to provide such information as that Secretary may reasonably require for the purposes of this...
- Section 780 - Application to Court by company member for order under section 796
(1) A member of a company may apply to the Court by application for an order under section 782 on the ground—
(a) that the company's affairs are being or have been conducted in a manner that is...
- Section 781 - Application to Court by Attorney General for order under section 783
(1) This section applies to a company in respect of which—
(a) the Attorney General has received an inspector's report under Part XXX;
(b) the Attorney General has exercised the powers under section...
- Section 782 - Power of Court to make orders for protection of members against oppressive conduct and unfair prejudice
(1) If, on the hearing of an application made in relation to a company undersection 780 or 781, the Court finds the grounds on which the application is made to be substantiated, it may make such...
- Section 783 - Copy of order affecting company’s constitution to be lodged with Registrar
(1) If an order of the Court made under section 782—
(a) alters the company's constitution; or
(b) authorises or directs the company to make any, or any specified, alterations to its constitution,...
- Section 784 - Supplementary provisions applicable if company’s constitution altered
(1) This section applies to an order made by the Court under section 782 that alters a company’s constitution.
(2) If the order amends—(a) a company's articles; or
(b) any resolution or agreement to...
- Section 785 - Interpretation: Part XXX
(1) In this Part—
(a) a reference to an officer or agent includes a former officer or agent;
(b) "agent", in relation to a company or other body corporate, includes a banker or advocate of the...
- Section 786 - Investigation of company’s affairs on application of members
(1) The Court may appoint one or more competent inspectors to investigatethe affairs of a company and to report on those affairs in such manner as the Court directs—
(a) in the case of a company...
- Section 787 - Investigation of company's affairs in other cases
(1) The Court shall appoint one or more competent inspectors to investigate the affairs of a company and to report on those affairs in such manner as the Court directs if the company by special...
- Section 788 - Power of inspectors to carry investigation into affairs of related companies
An inspector appointed to investigate the affairs of a company may also investigate the affairs of another body corporate that is related to the company if the inspector considers that the results of...
- Section 789 - General powers of Court to give directions to inspector
(1) In conducting an investigation under this Division, an inspector shall comply with any direction given by the Court under this section.
(2) The Court may give an inspector appointed under section...
- Section 790 - Power of Court to direct conduct of investigation under this Division to be terminated
(1) The Court may direct an inspector appointed under section 786 and 787(1) to take no further action in conducting the investigation if—
(a) matters have come to light in the course of the...
- Section 791 - Resignation and revocation of appointment of inspector appointed by the Court
(1) An inspector appointed under section 786 or 787 may resign by notice givento the Court.
(2) The Court may revoke the appointment of an inspector by notice given to the inspector.
- Section 792 - Power of Court to appoint replacement inspector
(1) If an inspector appointed by the Court to conduct an investigation resigns ordies, or the inspector’s appointment is revoked by the Court, the Court may appoint an inspector to continue the...
- Section 793 - Production of documents and evidence to inspector appointed by the Court
(1) Every officer and agent of a company in relation to which an inspector has been appointed under section 786 or 787 and, if the investigation extends to a body corporate related to the company,...
- Section 794 - Obstruction of inspectors appointed by Court to be contempt of Court
(1) If an officer or agent of the company or other body corporate—
(a) refuses to produce to an inspector a document that the inspector has, under section 793, required the officer or agent to...
- Section 795 - Power of inspector appointed by Court to apply to Court to conduct examination of person
(1) If an inspector appointed under section 786 or 787 believes it necessary for the purpose of the investigation that a person whom the inspector has no power to examine on oath should be so...
- Section 796 - Power of Court to obtain information from former inspectpor etc.
(1) This section applies to a person who has been appointed as an inspector under section 786 or 787, but— (a) who has since resigned; or whose appointment has since been revoked.
(2) This section...
- Section 797 - Inspector appointed by the Court to submit reports to the Court
(1) An inspector appointed by the Court—
(a) may (and if so directed by the Court, shall) make interim reports to the Court about the progress of the investigation; and
(b) as soon as practicable...
- Section 798 - Power of Director of Public Prosecutions to bring prosecution for offences disclosed by inspectors’ report
(1) If it appears to the Court that a person has, in relation to the company or to any other body corporate whose affairs have been investigated committed an offence for which the person is criminally...
- Section 799 - Expenses of investigation of company’s affairs
(1) The expenses of and incidental to an investigation by inspectors appointed by the Court are in the first instance to be met by the Attorney General, but the persons referred to in subsections (2)...
- Section 800 - Appointment of inspector to investigate ownership of company
(1) If satisfied that there are reasonable grounds for doing so, the Attorney General shall appoint one or more competent inspectors to investigate and report on the membership of a company for the...
- Section 801 - Power of inspector appointed by Attorney General to investigate ownership, etc. of related companies
An inspector appointed by the Attorney General may also investigate the ownership of another body corporate that is related to the company if the inspector considers that the results of the...
- Section 802 - General powers of Attorney General to give directions to inspectors appointed by the Attorney General
(1) In conducting an investigation under this Division, an inspector shall comply with a direction given to the inspector by the Attorney-General under this section.
(2) The Attorney General may give...
- Section 803 - Direction to terminate conduct of investigation under this Division
(1) The Attorney General may direct an inspector appointed by the Attorney General to conduct an investigation to take no further action in the investigation.
(2) The Attorney General may give a...
- Section 804 - Resignation and revocation of appointment of inspectors appointed by the Attorney General
(1) An inspector appointed by the Attorney General may resign by notice givento the Attorney General.
(2) The Attorney General may revoke the appointment of an inspector by notice given to the...
- Section 805 - Appointment of replacement inspectors appointed by the Attorney General
(1) If an inspector appointed by the Attorney General resigns or dies or theinspector’s appointment is revoked, the Attorney General may appoint one or more competent inspectors to continue the...
- Section 806 - Production of documents and evidence on investigation under this Division
(1) This section applies to—
(a) each officer and agent of the company in relation to which the inspector has been appointed by the Attorney General and, if the investigation extends to a body...
- Section 807 - Obstruction of inspectors appointed by the Attorney General to be contempt of Court
(1) If a person to whom section 806 applies—
(a) refuses to produce to an inspector a document that the inspector has, under that section, required the person to produce; or
(b) refuses to answer a...
- Section 808 - Inspector appointed by the Attorney General may apply to Court toconduct examination of person
(1) If an inspector appointed by the Attorney General believes it necessary for the purpose of the investigation that a person whom the inspector has no power to examine on oath should be so examined,...
- Section 809 - Inspector appointed by the Attorney General to submit reports to the Attorney General
(1) An inspector appointed by the Attorney General—
(a) may (and if so directed by the Attorney General, shall) make interim reports to the Attorney General about the progress of the investigation;...
- Section 810 - Power of Director of Public Prosecutions to bring prosecution for offences disclosed by inspectors’ report made under section 810
(1) If it appears to the Attorney General that a person has, in relation to the company or to any other body corporate whose affairs have been investigated under this Division, committed an offence...
- Section 811 - Power of Attorney General to require information about persons interested in securities of a company
(1) If satisfied that there is good reason to investigate the ownership of securities of a company and that is unnecessary to appoint an inspector for the purpose, the Attorney General may require any...
- Section 812 - Power of Attorney General to impose restrictions on securities
(1) On being satisfied, in relation to an investigation under either section 800 or 811, that there is difficulty in ascertaining the relevant facts about particular securities (whether issued or to...
- Section 813 - Inspector’s report to be evidence
(1) A copy of any report of an inspector appointed under this Part, certified bythe Attorney General to be a true copy, is admissible in all legal proceedings as evidence of the opinion of the...
- Section 814 - Power to bring civil proceedings on company’s behalf
(1) If, from a report made under section 797 or 809, the Attorney Generalconsiders that proceedings ought, in the public interest, to be brought by a body corporate named in the report—
(a) for the...
- Section 815 - Issue of warrants to enter and search premises
(1) On an application made on oath given by or on behalf of an inspector appointed by the Court or by the Attorney-General, a magistrate may issue a warrant under this section if satisfied that there...
- Section 816 - Protection in relation to certain disclosures: information provided to Attorney General
(1) A person who makes a relevant disclosure is not, only because of that disclosure, liable in proceedings relating to a breach of an obligation of confidence.
(2) A relevant disclosure is a...
- Section 817 - Prohibition on disclosure of information obtained under section 812 or 817
(1) This section applies to information obtained—
(a) as a result of a requirement imposed under section 811; or (b) by means of a relevant disclosure under section 816.
(2) Information to which...
- Section 818 - Offence to destroy, mutilate or falsify company documents
(1) An officer of a company who—
(a) destroys, mutilates or falsifies, or is complicit in the destruction, mutilation or falsification of a document affecting, or relating to the company's property...
- Section 819 - Offence to provide false information
A person who, in purported compliance with a requirement under section 811 to provide information—
(a) provides information that the person knows to be false in a material particular;...
- Section 820 - Disclosure of information by Attorney General or inspector
(1) This section applies to information obtained under Division 1 or 2.
(2) The Attorney General may—
(a) disclose information to which this section applies to any person to whom, or for any purpose...
- Section 821 - Certain information protected from disclosure
(1) Nothing in this Part compels a person to disclose to the Attorney General or to an inspector appointed under this Part information in respect of which in an action in the Court a claim to legal...
- Section 822 - Answers to questions put by inspector during examination admissible in legal proceedings as evidence
(1) An answer given by a person to a question put to the person by the inspectorfor the purposes of an investigation conducted under this Part can be used in evidence in legal proceedings against the...
- Section 823 - Application of this Part to foreign companies
(1) This Part applies to a foreign company that is carrying on business, or hasat any time carried on business, in Kenya except provided by subsection (2).
(2) Section 787 and section 800 to 811 do...