When auditors ceased to hold office for any reason, they are required to deposit at the company’s registered office a statement of circumstances set out any issues relating to the cessation of office that they consider should be brought to the attention of shareholders or creditors of the company or state that no such circumstances exist.
In the case of resignation, the statement should accompany the notice of resignation. If the auditor is not seeking reappointment the statement should be deposited at least 14 days before the general meeting where the accounts are laid or within 14 days of the accounts being circulated to shareholders if a resolution has been passed to remove the requirement for laying accounts at general meeting. In all other cases the statement should be deposited within 14 days if ceasing to hold office.
Within 14 days, the company must send a copy of the statement to everyone entitled to receive a copy of the annual accounts. If the company considers the statement to be defamatory it can apply to the court to allow the statement not to be circulated.
The auditor must be informed within 21 days if a court order is sought, and if this time elapses and no order is sought, the auditor has a further seven days to send a copy of the statement to the registrar of companies.
If successful court application is made, the company must inform everyone entitled to receive a copy of the annual accounts of this within 14 days of the court’s decision. If the court order fails, the auditor’s statement must be sent out within the same time frame and the auditor must also be informed of this decision. The auditor then has a further seven days to send a copy if the statement to the registrar.
Canterbury Accountancy - Information for companies subject to audit
