Page:Accountants Act 2004.pdf/26

26 :(b) ceased to be a director or an employee of the accounting corporation, the Oversight Committee 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 the 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.

(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 17(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.

Professional indemnity insurance

28.—(1) Every accounting corporation registered under this Act shall be covered by professional indemnity insurance of not less than one of the following amounts, whichever is the highest:
 * (a) $1 million;
 * (b) a sum equal to the total of $500,000 for every corporate practitioner in the accounting corporation; or