Section 324DA — Corporations Act 2001: Limited term for eligibility to play significant role in audit of a listed company, listed registered scheme or registrable superannuation entity

(1) If an individual plays a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for 5 successive financial years (the extended audit involvement period), the individual is not eligible to play a significant role in the audit of the company, the scheme or the entity for a later financial year (the subsequent financial year) unless: (a) the individual has not played a significant role in the audit of the company, the scheme or the entity for at least 2 successive financial years (the intervening financial years); and (b) the intervening financial years: (i) commence after the end of the extended audit involvement period; and (ii) end before the beginning of the subsequent financial year. Note: Play a significant role in an audit is defined in section 9. (2) An individual is not eligible to play a significant role in the audit of a listed company, listed registered scheme or registrable superannuation entity for a financial year if, were the individual to do so, the individual would play a significant role in the audit of the company, the scheme or the entity for more than 5 out of 7 successive financial years. (3) For the purposes of subsection (2), disregard an individual’s playing of a significant role in the audit of a company, scheme or entity for a financial year if: (a) either: (i) the directors of the company, scheme or entity grant an approval under section 324DAA in relation to the individual; or (ii) ASIC makes a declaration under paragraph 342A(1)(a) in relation to the individual; and (b) because of the approval or the declaration, subsection (1) of this section does not operate to make the individual not eligible to play a significant role in the audit of the company, scheme or entity for that financial year.