Maybe it's because of those breaches they want to remove and...

Maybe it's because of those breaches they want to remove and change the Auditor.

RESOLUTION 4 & 5 – REMOVAL AND APPOINTMENT OF AUDITOR
5.1 General
Under section 329 of the Corporations Act, an auditor of a company may be removed from office by
resolution at a general meeting of which 2 months’ notice of intention to move the resolution has been given.
It should be noted that under this section, if a company calls a meeting after the notice of intention has been
given, the meeting may pass the resolution even though the meeting is held less than 2 months after the
notice of intention is given.
Resolutions 4 and 5 are interdependent, with the result that if only one Resolution is passed by Shareholders,
the other does not become effective.
5.2 Removal of Auditor
Resolution 4 is an ordinary resolution seeking the removal of Criterion Audit Pty Ltd as the auditor of the
Company. An auditor may be removed in a general meeting provided that the notice of intention to remove
the auditor has been received from an officer of the Company. In accordance with section 329(2) of the
Corporations Act, the Company has sent a copy of the notice to Criterion Audit Pty Ltd.
Under section 327D of the Corporations Act, the Company in a general meeting may appoint an auditor to
replace an auditor removed under section 329 of the Act.
5.3 Appointment of Auditor
Resolution 5 is a special resolution seeking the appointment of RSM as the new auditor of the Company. As
required by the Corporations Act, a nomination for RSM to be appointed as the auditor of the Company has
been received from an officer. A copy of the nomination is set out at Schedule A. RSM has given its written
consent to act as the Company’s auditor in accordance with section 328A(1) of the Corporation Act subject
to shareholder approval of this resolution.
If Resolutions 4 and 5 are passed, the appointment of RSM as the Company’s auditor will take effect at the
close of this Meeting.