(1) No licensee shall knowingly appoint as its auditor a person, and no person shall knowingly consent to be appointed as an auditor of a licensee by the licensee or by the Bank, if that person-
(a) is not an approved company auditor;
(b) has interest in shares of the licensee exceeding five per cent;
(c) is a director, controller or employee of that licensee;
(d) is indebted to that licensee or to any related corporation of that licensee;
(e) is a partner, employer or employee of a director, controller, or employee, of that licensee;
(f) is responsible, or is the partner, employer, or employee of a person responsible, for the keeping of the register of members or the register of debenture holders of that licensee; or
(g) has been convicted of an offence under this Act or the Companies Act 1965 [Act 125], or of an offence involving fraud or dishonesty under any other written law.
Penalty: Imprisonment for one year or one million ringgit or both. Default penalty.
(2) Notwithstanding subsection (1), the Bank may approve in writing a person who is subject to any disqualification under that subsection to be appointed as an auditor if the Bank is satisfied that it would not be contrary to public interest.
(3) For the purposes of subsection (1), a person shall be deemed to be an employee of a licensee-
(a) if he is an employee of a related corporation of that licensee; or
(b) except where the Bank, in the circumstances of the case, otherwise directs, if he has, within the preceding twelve months, been an employee or promoter of that licensee or its related corporation.
(4) An auditor for a licensee who becomes subject to any of the disqualifications mentioned in this Part or in section 9 of the Companies Act 1965 [Act 125] shall immediately cease to be the auditor of the licensee.
Penalty: Imprisonment for one year or one million ringgit or both. Default penalty.