s.2Interpretation
2
Section 2Part 0 —

Interpretation

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In this Law —
“admitted to trading on a regulated market” means that all steps required by the relevant regulated market have been taken to allow the transferable securities in question to be traded on that regulated market;
“auditor” means — (a) a sole practitioner engaged in public practice from or within the Islands who is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law; (b) a partnership engaged in public practice from or within the Islands where each partner or person holding an equivalent position in such partnership who is engaged in public practice from or within the Islands is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law; or (c) a body corporate engaged in public practice from or within the Islands where each director or person holding an equivalent position in such body corporate who is engaged in public practice from or within the Islands is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law;
a sole practitioner engaged in public practice from or within the Islands who is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law;
a partnership engaged in public practice from or within the Islands where each partner or person holding an equivalent position in such partnership who is engaged in public practice from or within the Islands is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law; or
a body corporate engaged in public practice from or within the Islands where each director or person holding an equivalent position in such body corporate who is engaged in public practice from or within the Islands is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law;
“Authority” means the Auditors Oversight Authority established under section 3;
“Authority specified company” means a company, partnership, unit trust or other entity, whether or not incorporated or established in the Islands, which is not a market traded company or designated company and which falls within the specific type or category of company, partnership, unit trust or other entity specified by the Authority in a notice issued under section 17A;
“Board” means the board of directors established under section 6;
“Chairperson” means the Chairperson of the Board designated as such under section 6;
“cost of oversight” means any fees payable by the recognised auditor to the Authority in relation to the Authority’s oversight, monitoring or registration of recognised auditors, including but not limited to, the annual fees payable under section 22;
“Deputy Chairperson” means the Deputy Chairperson of the Board designated as such under section 6;
“designated company” means a company, partnership, unit trust or other entity, whether or not incorporated or established in the Islands, which is not a market traded company or an Authority specified company but which falls within a specific type or category of company, partnership, unit trust or other entity specified by Regulations;
“director” means a director referred to in section 6;
“exempted entity” means any type of company, partnership, unit trust or other entity specified as such by Regulations;
“functions” includes powers and duties;
“market traded company” means a company, partnership, unit trust or other entity, whether or not incorporated or established in the Islands, some or all of the transferable securities of which are admitted to trading on a regulated market except where that company, partnership, unit trust or other entity is an exempted entity;
“overseas auditor oversight body” means a body which, in a country or territory outside the Islands, is designated by law to exercise functions corresponding to — (a) any of the functions of the Authority; or (b) any additional functions that include the conduct of civil and administrative investigations and proceedings to enforce laws, regulations and rules administered by that body;
any of the functions of the Authority; or
any additional functions that include the conduct of civil and administrative investigations and proceedings to enforce laws, regulations and rules administered by that body;
“public practice” shall have the meaning given to that expression in the Regulatory Law;
“recognised auditor” means an auditor that is entered on the register;
“register” means the register of recognised auditors to be established and maintained under section 18;
“regulated market” means — (a) the Cayman Islands Stock Exchange; (b) a market regulated by a member state of the European Union specified by the Authority by notice in the Gazette; or (c) any other market specified by the Authority by notice in the Gazette provided that the jurisdiction in which the market is established imposes requirements with regard to the statutory audit of market traded companies by foreign public accountants;
the Cayman Islands Stock Exchange;
a market regulated by a member state of the European Union specified by the Authority by notice in the Gazette; or
any other market specified by the Authority by notice in the Gazette provided that the jurisdiction in which the market is established imposes requirements with regard to the statutory audit of market traded companies by foreign public accountants;
“Regulatory Law” means the Accountants Law (2020 Revision);
“Regulations” means regulations made under section 33;
“responsible individual” means an individual, designated by a recognised auditor and who is the holder of a valid licence issued under section 11 or 12 of the Regulatory Law, who is responsible for audit work on a recognised auditor’s behalf in relation to market traded companies designated companies or Authority specified companies and who is permitted to sign audit reports for the recognised auditor;
“Rules” means the rules and guidance issued by the Authority from time to time under section 29;
“Society” means the Cayman Islands Institute of Professional Accountants, formerly known as the Cayman Islands Society of Professional Accountants, established under section 3 of the Regulatory Law;
“statutory audit” means an audit of annual accounts or consolidated accounts insofar as required by law; and
“transferable securities” means those classes of securities, with the exception of instruments of payment, which are negotiable on the capital markets, such as — (a) shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares; (b) bonds or other forms of debt securities, including depositary receipts in respect of such securities; or (c) any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures.
shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares;
bonds or other forms of debt securities, including depositary receipts in respect of such securities; or
any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures.
For the purposes of this Law a person to whom the Authority has delegated any of its functions under section 16 includes a director, officer, employee, agent or representative of that person.

Defined Terms

admitted to trading on a regulated marketauditorAuthorityAuthority specified companyBoardChairpersoncost of oversightDeputy Chairpersondesignated companydirectorexempted entityfunctionsmarket traded companyoverseas auditor oversight bodypublic practicerecognised auditorregisterregulated marketRegulatory LawRegulationsresponsible individualRulesSocietystatutory audittransferable securities

Cross References