The notice states that the auditor resigned under S.329(5) of...

The notice states that the auditor resigned under S.329(5) of the Corporations Act. I have reproduced his provision:

(5) An auditor of a company may, by notice in writing given to the company, resign as auditor of the company if:

(a) the auditor has, by notice in writing given to ASIC, applied for consent to the resignation and stated the reasons for the application and, at or about the same time as the notice-was given to ASIC, notified the company in writing of the application ; and

(b) the consent of ASIC has been given.

These auditors recently signed off on the Annual Report.

They have given reasons in writing to ASIC and ASIC have accepted same and consented.

The ASX has not placed BRN in a trading halt as a result of the written explanation to the ASIC by the outgoing auditors and another auditor has been immediately appointed.

The company has a strong cash balance and a 4C due shortly.

An obvious reason for a change is if Brainchip were given a better price by the incoming auditor and the outgoing auditor could not match it.

Under S.329 of the Corporations Act if Brainchip decided to go with the cheaper price they could sack them but would have to call a meeting of shareholders and it becomes messy for the auditors who are resisting removal. Much better to leave voluntarily under subsection 5 as they have done.

On its face there is nothing to see here.

My opinion only DYOR
FF

AKIDA BALLISTA ASIC