Sec 263: Approved Company Auditor

The common reasons a casual vacancy arises in the office of an approved auditor under Malaysia’s Companies Act 2016 (CA 2016):

1. Resignation - the auditor gives written notice; office ends after 21 days or on the stated date.
   
   

2. Removal by members - via resolution (with special notice) to remove the auditor from office.
   
   

3. End of term with no re-appointment
   • Private company: auditor ceases 30 days after circulation of financial statements unless re-appointed; vacancy exists if re-appointment doesn’t occur or is prevented.
   • Public company: auditor ceases at the conclusion of the next AGM unless re-appointed; vacancy exists if no appointment is made.
   
   

4. Deemed-reappointment blocked by members — members’ notice prevents deemed re-appointment, leaving the post vacant until a new appointment.
   
   

5. Other cessations that make the auditor ineligible or unable to act (practical triggers that necessitate filling the vacancy), e.g. disqualification under s.264 (indebtedness, conflicting relationships, bankruptcy, fraud/dishonesty conviction), death of an individual auditor, or loss/revocation of approval under s.263

The summary of CA 2016 s.263 — Approved Company Auditor (public-company & private-company audits both rely on this approval).

s.263 sub-section	What it says (plain English)
(1)	You apply to the Minister of Finance (MOF) to be approved as a company auditor. SSM
(2)	MOF may approve you (upon fee) if satisfied you are of good character and competent to perform auditor duties. SSM
(3)	Approval may include conditions/limitations and may be revoked by notice. SSM
(4)	Validity: every approval (including renewals) lasts 2 years from issue unless revoked earlier. SSM+1
(5)	MOF may delegate these powers to a person/body responsible for registration/control of accountants in Malaysia. (Practically, this is delegated to the Accountant General’s Department.) SSM+1
(6)	If aggrieved by a decision (MOF or delegate), you may appeal to the Court. SSM
(7)	For s.263, “person” means a chartered accountant (as defined in the Accountants Act 1967). SSM

Practical pathway (how people actually qualify)

• Be a chartered accountant (MIA member) with practising certificate → apply via Accountant General, sit and pass the approval interview → MOF approval under s.263 (2-year licence). MIA+1

Approved Company Auditor (CA 2016 s.263) — Short Notes

Meaning: Person approved by the Minister of Finance (delegated to MOF/AGD) to act as company auditor under the Act.

Key eligibility: Good character + competency, usually a MIA Chartered Accountant (Accountants Act 1967).

Approval features: Time-limited licence (renewable), may have conditions, can be revoked.

Why it matters: Only an approved company auditor can sign statutory audit reports under the Act; acting without approval is an offence.

Linked provisions to revise:
s.264 Disqualifications (e.g., undischarged bankrupt, indebtedness to client, etc.).
s.266 Powers & duties (access to records, reporting).
s.267–283 Appointment, removal, resignation, AOB oversight (for PIEs via SC/AOB).

Mini-mnemonics
Auditor’s Statement = “R-A-Q-S” → Records • Audited as required • Qualification? • Solvency.
Approved Auditor = “3Cs + A” → Character • Competence • Conditions (licence) • Authorised by MOF.