Long Title

Part I PRELIMINARY

Part II LICENSING OF FINANCE COMPANIES

Part III RESERVE FUNDS, DIVIDENDS, BALANCE-SHEETS AND INFORMATION

Part IV REGULATION OF BUSINESS

Part V MINIMUM LIQUID ASSETS

Part VI INSPECTION AND CONTROL OF FINANCE COMPANIES

Part VII SUBMISSION OF ACCOUNTS AND DUTIES OF AUDITORS

Part VIII MISCELLANEOUS

Legislative History

Comparative Table

PART VII
SUBMISSION OF ACCOUNTS AND DUTIES OF AUDITORS
Directors to submit copy of profit and loss account
40.  The directors of a finance company shall submit to the Authority a copy of the profit and loss account and balance-sheet made out under section 201(1) and (3) of the Companies Act (Cap. 50).
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Appointment and duties of auditors
41.
—(1)  Notwithstanding the provisions of the Companies Act (Cap. 50), every finance company shall appoint annually an auditor approved by the Authority.
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(2)  An auditor shall not be approved by the Authority as an auditor for finance companies unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
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(3)  The Authority may appoint an auditor —
(a)
if the finance company fails to appoint an auditor; or
(b)
if the Authority considers it desirable that another auditor should act with the auditor appointed under subsection (1),
and may at any time fix the remuneration to be paid by the finance company to that auditor.
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(4)  The duties of an auditor appointed under subsections (1) and (3) shall be to carry out, for the year in respect of which he is appointed, an audit of the accounts of the finance company and to make a report in accordance with section 207 of the Companies Act.
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(5)  The Authority may impose all or any of the following duties on an auditor in addition to those provided under subsection (4):
(a)
a duty to submit such additional information in relation to his audit as the Authority considers necessary;
(b)
a duty to enlarge or extend the scope of his audit of the business and affairs of the finance company;
(c)
a duty to carry out any other examination or establish any other procedure in any particular case; and
(d)
a duty to submit a report on any of the matters referred to in paragraphs (b) and (c),
and the finance company shall remunerate the auditor in respect of the discharge by him of all or any of these additional duties.
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(6)  The auditor’s report made under subsection (4) shall be attached to the balance-sheet and the profit and loss account and a copy thereof together with any reports submitted under subsection (5) shall be transmitted in writing to the Authority.
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(7)  If an auditor, in the course of the performance of his duties as an auditor of a finance company, is satisfied that —
(a)
there has been a serious breach or non-observance of the provisions of this Act or that otherwise a criminal offence involving fraud or dishonesty has been committed;
(b)
losses have been incurred which reduce the capital funds of the finance company by 50%;
(c)
serious irregularities have occurred, including irregularities that jeopardise the security of the creditors; or
(d)
he is unable to confirm that the claims of creditors are still covered by the assets,
he shall immediately report the matter to the Authority.
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