Section 41: Termination of services of auditor

41. Termination of services of auditor (1) Any financial institution which decides to terminate the services of an auditor appointed under section 39 (1) or (11) before the expiry of his term of office shall— (a) by resolution passed at a meeting of its shareholders, or by resolution in lieu of meeting, in accordance with the Companies Act, terminate the services of the auditor and at the same time appoint a new auditor; and (b) obtain prior approval of the central bank to terminate the services of the auditor stating the reasons therefor or to appoint a new auditor. (2) Where the financial institution in Mauritius is a branch of a financial institution incorporated outside Mauritius, it shall present the approval of its head office to the central bank before terminating the services of an auditor or appointing a new auditor under subsection (1). (3) Where an auditor appointed under section 39 (1) or (11) intends— (a) not to seek reappointment; or (b) to resign before the expiry of his term of office, he shall, within at least 30 days before the expiry of his term of office or his date of resignation, as applicable, give notice thereof to the central bank and the reasons for such action. B3 – 33 [Issue 6] Banking Act