Section 324DA — Corporations Act 2001 (Cth)

(1) If an individual plays a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for 5 successive financial years (the extended audit involvement period), the individual is not eligible to play a significant role in the audit of the company, the scheme or the entity for a later financial year (the subsequent financial year) unless:

(a) the individual has not played a significant role in the audit of the company, the scheme or the entity for at least 2 successive financial years (the intervening financial years); and

(b) the intervening financial years:

(i) commence after the end of the extended audit involvement period; and

(ii) end before the beginning of the subsequent financial year.

Note: Play a significant role in an audit is defined in section 9.

(2) An individual is not eligible to play a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for a financial year if, were the individual to do so, the individual would play a significant role in the audit of the company, the scheme or the entity for more than 5 out of 7 successive financial years.

(3) For the purposes of subsection (2), disregard an individual’s playing of a significant role in the audit of a company, scheme or entity for a financial year if:

(a) either:

(i) the directors of the company, scheme or entity grant an approval under section 324DAA in relation to the individual; or

(ii) ASIC makes a declaration under paragraph 342A(1)(a) in relation to the individual; and

(b) because of the approval or the declaration, subsection (1) of this section does not operate to make the individual not eligible to play a significant role in the audit of the company, scheme or entity for that financial year.

Related sections

• s 324CL — People who are regarded as officers of a company for the purposes of this Division
• s 324CLA — Extended meaning of officer of a registrable superannuation entity
• s 324CM — Deliberately disqualifying auditor
• s 324DAA — Directors may extend eligibility term
• s 324DAB — Requirements for directors to approve extension of eligibility term
• s 324DAC — Notifications about approval to extend eligibility term

Research how courts apply s 324DA

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