Board Minutes for a subsidiary company claiming an audit exemption (s.479A Companies Act 2006)

A UK company that is a subsidiary of a UK parent company can qualify for exemption from audit under the subsidiary company exemption (section 479A, Companies Act 2006) where the parent guarantees the subsidiary’s outstanding liabilities for a particular financial year.

One of the conditions for using this exemption is that the members of the subsidiary company must agree to the exemption. That agreement must be unanimous.

What these board minutes are for

These board minutes can be used by the subsidiary company to record the directors’ decision to seek exemption from audit of its individual accounts for a particular financial year under section 479A, Companies Act 2006.

What the minutes record

The minutes are drafted to note the key requirements for claiming the exemption, including:

• the requirement for a unanimous members’ written notice agreeing to the exemption;
• the documents produced to the meeting; and
• the documents to be filed at Companies House in connection with the exemption.

Related guidance

Our guidance note on Guidance Note: Accounts & Audit explains this audit exemption in more detail, including the formalities that must be met to qualify for it.

Board Minutes for a subsidiary company claiming an audit exemption (s.479A Companies Act 2006) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.