Clause 15

Every licensed bank shall appoint annually an auditor, being a person approved by the Minister whose duties shall be to make a report to the shareholders of such bank upon the annual balance-sheet and accounts; and in every such report the auditor shall state whether in his opinion the balance-sheet is full and fair and properly drawn up, whether it exhibits a true and correct statement of the bank’s affairs, and, if the auditor has called for explanation or information from the officers or agents of the bank, whether it has been satisfactory.

The report of the auditor shall be read together with the report of the board of management of the licensed bank at the annual meeting of shareholders and a copy of it shall be sent to the Inspector for transmission to the Minister.

Any licensed bank which fails to comply with the requirements of subsection (2) of this section shall be guilty of an offence against this Ordinance and shall, on conviction, be liable to a fine not exceeding five thousand dollars.

If a licensed bank fails to appoint an auditor under subsection (1) of this section or at any time fails to fill a vacancy for an auditor the Minister shall have power to appoint an auditor and shall fix the remuneration to be paid by that bank to such auditor.

No person having an interest in a licensed bank otherwise than as a shareholder, and no director, officer or employee or agent of that bank, shall be eligible for appointment as an auditor for such bank, and any person appointed as auditor to a licensed bank who shall after such appointment acquire such interest or become a director or an officer or employee or agent of such bank shall forthwith cease to be such auditor.

The duties, powers and liabilities imposed and conferred by section 20 of this Ordinance in relation to an investigation by the Inspector of the affairs of a licensed bank under section 17 or 18 of this Ordinance are hereby imposed and conferred in relation to auditors appointed under this section.

Where in the case of a licensed bank whose head office is situated outside Singapore the Minister is satisfied that a report has been duly made by an auditor in accordance with the law of the country in which such head office is situated upon the annual balance-sheet and accounts of such bank, and a copy of such report together with the report of the board of management of such bank is sent to the Inspector for transmission to the Minister, he may by notice in writing exempt any such bank from the provisions of this section.