Section 140 - Remuneration of an auditor

(1) The remuneration of an auditor of a company shall be fixed where the auditor is appointed

(a) by the directors for the period expiring at the conclusion of the next annual general meeting of the company;

(b) by the Registrar; or

(c) at a meeting of the company, by ordinary resolution of the company or in a manner that the company by ordinary resolution may determine.

(2) For purposes of full disclosure, the

(a) company shall clearly state in the financial statements which are accessible and reported to shareholders of the company the remuneration offered to an auditor of the company for any service rendered; and

(b) remuneration payable to an auditor of the company shall be subject to confirmation by members of the company.

(3) For the purposes of this section, “remuneration” includes the sums of money payable by a company in respect of the expenses of an auditor.

(4) Where a company contravenes a provision of this section, the company and an officer of the company that is in default are liable each to pay to the Registrar an administrative penalty of two hundred and fifty penalty units.