§80a–31 Accountants and Auditors

Summary

Registered management companies and registered face-amount certificate companies must not file a financial statement signed by an independent public accountant unless that accountant was picked at a meeting held within thirty days before or after the start of the fiscal year or before that year’s annual stockholders’ meeting, and that choice is put up for approval at the next annual meeting (if one is held). If the accountant leaves between annual meetings because of death or resignation, the board’s non‑interested directors can fill the vacancy at a meeting called for that purpose. The company must be able to end the accountant’s work immediately without penalty by a vote of a majority of the outstanding voting securities at a meeting called for that purpose. The accountant’s report must be addressed to both the board of directors and the security holders. A company also cannot file a financial statement that was prepared with the participation of its controller or main accounting officer unless that person was chosen either by the holders’ vote at the last annual meeting or by the board of directors. The Securities and Exchange Commission can require accountants and auditors to keep reports, work papers, and other documents about registered investment companies for whatever time the Commission sets, and to let the Commission inspect them.