Companies Act 2014 section 1218

Application of sections 334, 350 and 362 to a CLG

Section 1218 adapts the rules on a member's right to require an audit (section 334) so that they apply appropriately to a Company Limited by Guarantee (CLG).

• Any single member of a CLG may serve a written notice on the company stating that they do not wish the audit exemption to be available for a specified financial year.
• There is no minimum shareholding threshold for triggering this right in a CLG — any one member can require an audit.
• The original subsection (3) of section 334 is removed entirely when applied to a CLG.
• Where the CLG is a subsidiary undertaking, a member's notice applies to the subsidiary regardless of whether the parent company or other group entities avail themselves of the audit exemption that year.