Part 2 — Provincial Companies Subpart 1 Status and Powers of Provincial Companies
374 Qualifications of auditor
of a provincial company must
(a) be a member in good standing of an institute or association
of accountants incorporated by or under an Act,
(b) have at least 5 years' expe rience in performing audits of a
financial institution, and
(c) be ordinarily resident in Canada.
(2) The auditor of a provincial company, every partner in a firm
that is the auditor of a provincial company and the designated
individual of an auditor must be independent of the company.
(3) For the purposes of subsection (2),
(a) independence is a question of fact, and
(b) a person is deemed not to be independent of a provincial
company if that person
(i) is a director or an officer or employee of the company or
of any affiliate of the company or is a business partner of
any director, officer or employee of the company or of
any affiliate of the company,
(ii) beneficially owns or cont rols, directly or indirectly, a
material interest in the shares of the company or of any
affiliate of the company, or
(iii) has been a liquidator, trustee in bankruptcy, receiver or
receiver and manager of any affiliate of the company
within the 2 years immediately preceding the person's or
person's firm's proposed appointment as auditor of the
company or the individual's proposed designation by the
auditor, other than an affiliate that is a subsidiary of the
company acquired pursuant to a loan workout or through
a realization of security pursuant to section 421(2).
(4) No person is disqualified from acting as the auditor of a
provincial company or from being a designated individual solely on
RSA 2000
the grounds that the person or, if the person is a firm, a partner of
the firm is a policyholder in the company.
1999 cI-5.1 s374