§ 388A.—(1) A company which by virtue of section 250 (dormant companies: exemption from provisions as to audit of accounts) is exempt from the provisions of Part VII relating to the audit of accounts is also exempt from the obligation to appoint auditors.
§ (2) The following provisions apply if the exemption ceases.
§ (3) Where section 385 applies (appointment at general meeting at which accounts are laid), the directors may appoint auditors at any time before the next meeting of the company at which accounts are to he laid; and auditors so appointed shall hold office until the conclusion of that meeting.
§ (4) Where section 385A applies (appointment by private company not obliged to lay accounts), the directors may appoint auditors at any time before—
- (a) the end of the period of 28 days beginning with the day on which copies of the company's annual accounts are next sent to members under section 238, or
- (b) if notice is given under section 253(2) requiring the laying of the accounts before the company in general meeting, the beginning of that meeting; and auditors so appointed shall hold office until the end of that period or, as the case may be, the conclusion of that meeting.
§ (5) If the directors fail to exercise their powers under subsection (3) or (4), the powers may be exercised by the company in general meeting.'.
§ No. 113, in page 118, line 19, at end insert—
§ '(3) In section 46(2) of the Banking Act 1987 (duty of auditor of authorised institution to give notice to Bank of
| "389A(2) | Officer of company making false, misleading or deceptive statement to auditors. |
| 389A(3) | Subsidiary undertaking or its auditor failing to give information to auditors of parent company |
| 389A(4) | Parent company failing to obtain from subsidiary undertaking information for purposes of audit. |
§ '(4) In schedule 22 to the Companies Act 1985 (unregistered companies), in the entry for sections 384 to 393, for "393" substitute "394A".'.
1202§ England of certain matters) for "appointed under section 384" substitute "appointed under Chapter V of Part XI"; and in section 46(4) (adaptation of references in relation to Northern Ireland) for "sections 384," substitute "Chapter V of Part XI and sections".'.—[Mr. Redwood.]