Part 10 — Financial Disclosure
234 Qualifications of auditor
being an auditor of a cooperative if the person is not independent of
the cooperative, of any of its affiliates or of the directors or officers
of the cooperative or its affiliates.
(2) For the purposes of this section,
(a) independence is a question of fact, and
(b) a person is deemed not to be independent if the person, or
another person with whom the person is in business,
(i) is a director, officer or employee of the cooperative or
any of its affiliates, is in business with the cooperative or
any of its affiliates, or is in business with a director,
officer or employee of the cooperative or any of its
affiliates,
(ii) beneficially owns or contr ols, directly or indirectly, a
material interest in the securities of the cooperative or
any of its affiliates, or
(iii) has been a receiver, r eceiver-manager, liquidator or
trustee in bankruptcy of the cooperative or any of its
affiliates within 2 years of the proposed appointment of
the person as auditor of the cooperative.
(3) An auditor who becomes disqualified under this section must,
subject to subsection (5), resign without delay after becoming
aware of the disqualification.
(4) Any interested person may apply to the Court for an order
declaring an auditor to be disqualified under this section and the
office of auditor to be vacant.
(5) Any interested person may apply to the Court for an order
exempting an auditor from disqualification under this section, and
the Court may, if it is satisfied that an exemption would not
unfairly prejudice the members or investment shareholders, make
an exemption order on any terms that it thinks fit, and the order
may have retrospective effect.