Companies Act 2014 section 1221

Application of section 392 to a CLG

Section 1221 adapts the statutory auditor's reporting obligations regarding accounting records so that they apply appropriately to a company limited by guarantee (CLG).

• Section 392 requires statutory auditors to report to the Registrar and the Corporate Enforcement Authority where a company's accounting records are inadequate.
• Section 392 applies to a CLG, but with a necessary terminology adjustment to reflect the CLG structure.
• In subsection (6) of section 392, the reference to "its shareholders" is replaced with "its members" when applied to a CLG.
• This change recognises that a CLG does not have shareholders in the traditional sense, as it has no share capital — its owners are referred to as members.