113.—(1) At each annual general meeting a credit union shall, by a majority vote of the members present and voting, elect an auditor to hold office from the conclusion of that meeting until the next annual general meeting.

(2) Notwithstanding any agreement between the credit union and an auditor, and without prejudice to any rights of the auditor in relation to his removal under this Act, a credit union may by resolution at a general meeting remove an auditor before the term of his office expires and may elect in his place a person—

(a) who has been duly nominated for election;

(b) who is qualified under this Act to be an auditor of a credit union; and

(c) of whose nomination due notice has been given to the members of the credit union and the F340[Bank].

(3) The first auditor of a credit union may be appointed by the directors at any time before the first annual general meeting; but no person shall be so appointed unless he is qualified for election as an auditor of a credit union.

(4) Where the directors fail to exercise their power under subsection (3), the first auditor may be elected by a majority vote of the members present and voting at a general meeting of the credit union and thereupon the power of the directors under subsection (3) shall cease.

(5) Where, at an annual general meeting, no auditor is elected, the F340[Bank] may appoint a person who is qualified under this Act to be an auditor of a credit union to fill the vacancy and the remuneration and expenses of an auditor so appointed shall be paid out of the funds of the credit union.

(6) A credit union shall—

(a) within one week of the F340[Bank]’s powers under subsection (5) becoming exercisable, give the F340[Bank] notice of that fact; and

(b) where a resolution removing an auditor is passed, give notice of that fact to the F340[Bank] in such form as may be required by the F340[Bank] within 14 days of the meeting at which the resolution removing the auditor was passed.

(7) The directors of a credit union may fill any casual vacancy in the office of auditor with a person who is qualified to be elected an auditor of a credit union but, while any such vacancy continues, the surviving or continuing auditor or auditors, if any, may act.

(8) The election of a firm by the name of the firm to be the auditor of a credit union shall be deemed to be an election of those persons who from time to time during the period of appointment are the partners in that firm as from time to time constituted and are qualified to be auditors of a credit union.

(9) Where the F340[Bank] is of the opinion that it would not be in the interest of the orderly and proper regulation of the business of a credit union or in its members' interests, F340[it] may by notice in writing order the credit union not to elect or re-elect to the office of auditor, or the directors not to fill a casual vacancy in that office with, a named person.

(10) Where the F340[Bank] makes an order under subsection (9), the credit union may appeal against the order to the Court but, subject to any direction or decision of the Court, the credit union shall comply with the order.