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Section 776 of The Companies Act No. 17 of 2015: 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 partners.
(2) If the partnership ceases, the appointment is to be treated as extending to—
(a) any appropriate partnership that succeeds to the practice of that partnership; or
(b) any other appropriate person who succeeds to that practice having previously carried it on in partnership.
(3) For the purposes of subsection (2)—
(a) a partnership is to be regarded as succeeding to the practice of another partnership only if the members of the successor partnership are substantially the same as those of the former partnership; and
(b) a partnership or other person is to be regarded as succeeding to the practice of a partnership only if the partnership or other person succeeds to the whole or substantially the whole of the business of the former partnership.
(4) If the partnership ceases and the appointment is not treated under subsection (2) as extending to any partnership or other person, the appointment may, with the consent of the audited person, be treated as extending to an appropriate partnership, or other appropriate person, who succeeds to—
(a) the business of the former partnership, or
(b) such part of it as is agreed by the audited person is to be treated as comprising the appointment.
(5) For the purposes of this section, a partnership or other person is appropriate if the partnership or person—
(a) is eligible for appointment as a statutory auditor; and
(b) is not prohibited by section 774(1) from acting as a statutory auditor of the audited person.

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Disclaimer: This document is not to be taken as legal advise.

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