What happens when the auditor resigns from a Hong Kong company?

Process (s.417)

• The auditor gives the company a written notice of resignation with a statement of circumstances (s.424): either stating any circumstances the auditor thinks members or creditors should know about, or stating there are none.
• The term ends at the end of the day on which notice is given, or at a later time if the notice says so.
• The company must deliver a notification in the specified form to the Registrar within 15 days starting on the date it receives the notice. The Registry's FAQ identifies the form as NA2.

Penalty for the company If the company does not file, the company and every responsible person commit an offence, with a level 5 fine (HK$50,000) and imprisonment of up to 6 months, plus a further daily fine of HK$1,000 for a continuing offence (s.417(4)).

The auditor's side

• A "statement of no circumstances" does not need to be filed with the Registrar; a statement of circumstances must be sent to the Registrar by the auditor within the periods in ss.426-427, per the Registry's FAQ.
• The resigning auditor may ask the directors to call a general meeting to hear the circumstances; the directors must convene within 21 days for a meeting held within 28 days (s.421).

What the company does next Fill the vacancy under s.397, and tell the new auditor to request information from the former auditor under s.414.