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Apr 18 2006 - Jul 31 2006Aug 1 2006 - Jul 11 2010

35. Appointment and removal of auditors



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Past version: effective from Aug 1 2006 - Jul 11 2010.
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(1) The Operator of a Domestic Fund shall:
(a) pursuant to Article 21(5) and subject to Article 35(7), appoint an auditor; and
(b) at each annual general meeting appoint an auditor to hold office from the conclusion of that meeting to the conclusion of the next annual general meeting; or
(c) at the beginning of each financial year appoint an auditor to hold office until the beginning of the next financial year.
(2) The appointment of a firm as an auditor of a Domestic Fund is taken to be an appointment of all persons who are partners of the firm.
(3) An Operator and, if appointed, the Trustee shall ensure that at all times the Fund has an auditor.
(4) The Operator of a Domestic Fund shall not appoint an auditor under this Article unless:
(a) the auditor has, prior to the appointment, consented in writing to serve as the auditor for the Domestic Fund;
(b) the Operator and, if appointed, the Trustee is not, on reasonable inquiry, aware of any matter which should preclude the auditor from giving its consent under Article 35(5); and
(c) the auditor is registered with the DFSA in accordance with Part 8 of the Regulatory Law 2004.
(5) An auditor shall not consent to an appointment as an auditor of a Domestic Fund if:
(a) the auditor has, or may reasonably be perceived to have, a conflict of interest of a nature prescribed in the Rules;
(b) the auditor does not have, or may reasonably be perceived not to have, a requisite degree of independence from the Operator and, if appointed, the Trustee or other members of the Governing Body of the Domestic Fund as prescribed in the Rules; or
(c) the auditor or any associate of the auditor in a firm or business undertaking has acted as an auditor of the Domestic Fund and, if appointed, the Trustee within such earlier period or frequency as prescribed in the Rules.
(6) The Operator of a Domestic Fund may, subject to Articles 35(7) and 38, at any time remove an auditor notwithstanding anything in any agreement between it and the auditor.
(7) In the case of an Investment Trust, the Operator must obtain the prior approval of the Trustee before carrying out any activities under Article 35 in relation to the appointment or removal of an auditor.
(8) The Court may, on application made by the DFSA, order the removal of an auditor of a Domestic Fund.
(9) Nothing in this Article is to be taken as depriving an auditor removed under it of compensation or damages payable to the auditor in respect of the termination of appointment as auditor.