Shareholders’ Ordinary Resolution – Appointment of Auditors
PLEASE BE AWARE THAT THE ECONOMIC CRIME & CORPORATE TRANSPARENCY ACT 2023 IS BEING IMPLEMENTED IN PHASES AND MAY CHANGE THIS TEMPLATE.
Use this Shareholders’ Ordinary Resolution – Appointment of Auditors to appoint an auditor for a financial year where shareholder appointment is required.
When an auditor must be appointed
Under the Companies Act 2006, unless audited accounts are unlikely to be required (for example, if an audit exemption applies), an auditor must be appointed for each financial year.
When shareholders appoint the auditor
The directors may appoint the first auditor (or the first following a period of exemption from audit). Otherwise, the shareholders appoint an auditor by passing an ordinary resolution during the period for appointing auditors, or where the directors had power to appoint an auditor but have failed to make an appointment.
The period for appointing auditors (28 days)
The period for appointing auditors is the 28 day period following the circulation of the accounts to members.
The 28 day period starts at the end of the time allowed for sending out the annual accounts and reports, or if earlier, the date on which the annual accounts and report were actually sent out.
If you are removing the current auditor
If the shareholders are removing auditors prior to appointing new ones, use:
Shareholders’ Ordinary Resolution – Appointment of Auditors is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.