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Companies Act, 1990

Appointment and removal of auditors.

183.Section 160 of the Principal Act is hereby amended—

(a) by the substitution of the following subsections for subsection (5)—

“(5) Without prejudice to any rights of the auditor in relation to his removal under this subsection, a company may, by ordinary resolution at a general meeting, remove an auditor other than an auditor who is the first auditor or one of the first auditors of the company and appoint in his place any other person who has been nominated for appointment by any member of the company, who is qualified under the Companies Acts to be an auditor of a company and of whose nomination notice has been given to its members.

(5A) (a) A company shall—

(i) within one week of the Minister's power under subsection (4) becoming exercisable, give the Minister notice of that fact, and

(ii) where a resolution removing an auditor is passed, give notice of that fact in the prescribed form to the registrar of companies within 14 days of the meeting at which the resolution removing the auditor was passed.

(b) If a company fails to give notice as required by paragraph (a) of this subsection, the company and every officer of the company who is in default shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding £1,000.”,


(b) by the substitution of the following subsection for subsection (7)—

“(7) The directors of a company or the company in general meeting may fill any casual vacancy in the office of auditor, but while any such vacancy continues, the surviving or continuing auditor or auditors, if any, may act.”.