The method suggested by Waterman has been widely used in the last years to solve various light scattering problems. We analyze the mathematical foundations of this method when it is applied to layered nonspherical (axisymmetric) particles in the electrostatic case. We formulate the conditions under which Waterman's method is applicable, that is, when it gives an infinite system of linear algebraic equations relative to the unknown coefficients of the field expansions which is solvable (i.e., the inverse matrix exists) and solutions of the truncated systems used in calculations converge to the solution of the infinite system. The conditions obtained are shown to agree with results of numerical computations. Keeping in mind the strong similarity of the electrostatic and light scattering cases and the agreement of our conclusions with the numerical calculations available for homogeneous and layered scatterers, we suggest that our results are valid for light scattering as well.