Section 32
Shares of accounting corporation
(1)
Subject to this Act, the voting shares in an accounting corporation shall at all times be owned by corporate practitioners in the proportions referred to in section 20(3)(c)(ii) and shall comply with the prescribed requirements.
(2)
The share capital of an accounting corporation which is paid up shall at all times be not less than $20,000 or such other sum as may be prescribed.
(3)
No share in an accounting corporation shall be held by any person as nominee for another person and no security may be created over any share in an accounting corporation.
(4)
Any purchase or acquisition of a share of an accounting corporation, and any security created over any such share, in contravention of subsection (3) shall be void.
(5)
A public accountant whose registration has been cancelled under
Part 6 or 7 shall not —
(a)
hold any shares in any accounting corporation; or
(b)
directly or indirectly take part or be concerned in the management or practice of any accounting corporation without the permission of the Authority, unless and until he is subsequently reinstated as a registered public accountant.
(6)
A public accountant whose registration has been suspended under
Part 6 or 7 shall not, during the period of suspension —
(a)
exercise any voting rights attached to his shares in any accounting corporation; or
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(b)
take part or be concerned in the management or practice of any accounting corporation without the permission of the Authority.
(7)
Notwithstanding subsections (1) and (5), where any person who is a member of an accounting corporation by virtue of being a corporate practitioner has, for any reason other than one of those mentioned in subsection (8), ceased to be —
(a)
a public accountant; or
(b)
a director or an employee of the accounting corporation, the Authority may, upon an application made by that person or by the accounting corporation concerned, grant him a grace period of not more than 2 years to transfer his voting shares in the accounting corporation.
(8)
Notwithstanding subsection (1), where any person who is a member of an accounting corporation by virtue of being a corporate practitioner has, by reason of death, bankruptcy or incapacity due to mental or physical disability —
(a)
ceased to be a public accountant; or
(b)
ceased to be a director or an employee of the accounting corporation, the Authority may, upon the application of the accounting corporation concerned, allow the administrator or executor of that person’s estate, the trustee in bankruptcy or the committee of that estate, as the case may be, to hold that person’s voting shares in the accounting corporation for a grace period.
(9)
The grace period referred to in subsection (8) shall be a period not exceeding 2 years commencing —
(a)
in the case of death, from the date the administrator or executor is appointed by the court;
(b)
in the case of bankruptcy, from the date the person is adjudged a bankrupt; or
(c)
in the case of incapacity by reason of mental or physical disability, from the date the person becomes incapable to act.
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(10)
The person or persons who are allowed under subsections (7)
and (8), respectively, a grace period to transfer or hold voting shares in an accounting corporation shall be treated as corporate practitioners for the purposes of computing the proportion of any voting shares in the accounting corporation which is required by section 20(3)(c)(ii) to be owned by corporate practitioners.
(11)
The person or persons who are allowed under subsections (7)
and (8), respectively, a grace period to transfer or hold voting shares in an accounting corporation shall not during the grace period exercise any voting rights attached to his or their voting shares in the accounting corporation or take part or be concerned in the management or practice of the accounting corporation.