Previously a guarantee company could not avail of the audit exemption even where it technically met the conditions to be a ‘small’ company. However, Section 1173 of Part 18 of the Act applies the requirements of Parts 1 to 14 (volume 1) to guarantee companies. Certain sections of volume 1 are disapplied or modified by Part 18 however the relevant sections outlined above as relate to the audit exemption are not disapplied and only Section 334 is slightly modified in that it allows for any one member to require an audit rather than the 10% rule required for private companies limited by shares.
CA 2014 summary of changes – companies limited by guarantee
- Companies limited by guarantee can now avail of an audit exemption