ADVOKS GLOBAL · KENYA
Companies Act
773. Ineligible person prohibited from acting as a statutory auditor
Edition: 2024-12-27 · In force
773. 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.