Commentary Part 16: Audit Private companies Section 487: Term of office of auditors of private company
742.This section provides that the end of the term of office of the auditor of a private company is to be the end of the next period for appointing auditors. At the end of his term an auditor will automatically be deemed to be re-appointed except in five cases:
	if he was appointed by the directors;
	if the company’s articles require actual re-appointment;
	if enough members have given notice to the company under section 488;
	if there has been a resolution that the auditor should not be reappointed; or
	if the directors decide that they do not need auditors for the following year.
743.When there is a change of auditor the term of office of the incoming auditor does not begin before the end of the previous auditor’s term. This means that a new auditor’s term will typically begin immediately after the end of the 28-day period for appointing auditors.