Cap. 403 Art. 21Appointment, duties and termination of appointment of auditors.

(1) Every undertaking authorised under this Act shall every year appoint an approved auditor as auditor to the undertaking whose duty shall be to report on the financial statements of the undertaking examined by him and on financial statements prepared by the undertaking.

(2) If an authorised undertaking fails to appoint an auditor as required by sub-article (1), or at any time fails to fill any vacancy in the office of auditor, the competent authority shall have the power to appoint an auditor for that undertaking and shall fix the remuneration to be paid by that undertaking to such auditor.

(3) The auditor’s report shall include a statement on compliance by the enrolled person with requirements specified by means of Insurance Rules made for the purposes of this article, which may also specify the information to be contained in such statement.

(4) Every auditor of an authorised undertaking shall have the right to demand such information or explanation as he deems necessary in the performance of his duties from any officer or employee of, or any person under an appointment from, that undertaking.

(5) An auditor shall immediately give notice in writing to the competent authority if -

(a) he resigns;

(b) he does not seek to be re-appointed; or

(c) he decides to qualify the audit report, and, in the case of a resignation, the auditor shall specify the reasons for so doing.

(6) An authorised undertaking shall give notice in writing to the competent authority immediately it receives notice of a resolution intended to be put before the undertaking’s annual general meeting to appoint as an auditor a person other than the retiring auditor or otherwise providing expressly that the retiring auditor shall not be reappointed.

(7) Where, for any reason whatever, the appointment of an auditor comes to an end, the authorised undertaking shall, not later than fourteen days from the termination of such appointment, give notice in writing to the competent authority stating reasons for such termination.

(8) The competent authority may require an authorised undertaking to change its appointed auditor where, in the competent authority’s opinion, such auditor is considered unfit for this appointment, at any time during his term of office.

(9) Before requiring an authorised undertaking to change its appointed auditor in the circumstances mentioned in sub-article (8), the competent authority shall notify in writing its intention to the undertaking and the auditor concerned stating reasons for requiring such change and giving the auditor the opportunity to submit in writing within fourteen days from the date of serving of such notice reason why its appointment with the undertaking should not be terminated.

(10) For the purposes of this Act, an approved auditor shall be a person who is qualified to be an auditor in accordance with the Companies Act, and holds the authorisation of the competent authority issued to him in accordance with regulations made for the purpose of this article.

(11) Notwithstanding anything contained in the foregoing sub-articles, the competent authority may, in the case of a third country insurance or reinsurance undertaking authorised as aforesaid, approve such alternative arrangements as it thinks reasonable and which do not materially detract from the main objects of this article, and where such arrangements have been carried out, the provisions of this article shall not apply to the extent that they are replaced by such arrangements.

(12) Subject to the provisions of sub-article (10), in so far as the provisions of this article are inconsistent with the provisions of the Companies Act, the provisions of this article shall prevail, and the provisions of the said Act shall, to the extent of the inconsistency, not apply to authorised undertakings as aforesaid.