Additional powers of Authority in respect of auditors
16.—(1)  If an auditor, in the course of the performance of his duties as an auditor of the transferee holding company, becomes aware —
(a)of any matter which, in his opinion, may adversely affect the financial position of the transferee holding company to a material extent;
(b)of any matter which, in his opinion, may constitute a breach of any provision of this Act or a criminal offence involving fraud or dishonesty; or
(c)of any irregularities that have a material effect upon the accounts, including irregularities that may affect or jeopardise the funds or property of investors in securities or futures contracts,
he shall immediately report the matter to the Authority.
(2)  An auditor shall not, in the absence of malice on his part, be liable to any action for defamation at the suit of any person in respect of any statement made in his report under subsection (1).
(3)  Subsection (2) shall not restrict or affect any right, privilege or immunity that the auditor has, apart from this section, as a defendant in an action for defamation.
(4)  Notwithstanding the provisions of the Companies Act (Cap. 50), the Authority may impose all or any of the following additional duties on an auditor of the transferee holding company:
(a)a duty to submit such additional information and reports in relation to his audit as the Authority considers necessary;
(b)a duty to enlarge, extend or alter the scope of his audit of the business and affairs of the transferee holding company;
(c)a duty to carry out any other examination or establish any procedure in any particular case;
(d)a duty to submit a report on any matter referred to in paragraph (b) or (c),
and the transferee holding company shall remunerate the auditor in respect of the discharge by him of all or any of these additional duties.
(5)  For the avoidance of doubt, sections 207 and 208 of the Companies Act (Cap. 50) shall, to the extent to which they may be applicable, apply to the discharge of an auditor’s additional duties under subsection (4).