Audit

Recently, companies which trade other than in certain specific types of business have been able to take advantage of the exemption to appoint auditors. If the company’s turnover is below £5.6m the company does not require any audit. There are provisions which protect individual members so that if they still want an audit and send an appropriate notice to the directors, the directors must get the accounts audited. An auditor must be registered before accepting appointment to audit accounts. Hale & Company are registered auditors.

Regardless of whether the accounts are audited or not, private companies can also take advantage of certain procedural matters in that the company can elect not to hold an annual general meeting each year, it can elect not to reappoint auditors each year and can elect that accounts do not have to be presented at an annual general meeting. Shareholders must still be sent a copy of the accounts but no meeting has to be held for them to be formally approved.

Resolutions (decisions) by the Board of Directors must be recorded in writing. Resolutions by the company can be in writing instead of convening a formal meeting.