Companies Act 2014 section 1222

Application of section 393 to a CLG

Section 1222 adapts the statutory auditor's duty to report suspected category 1 and category 2 offences to the Registrar and the Corporate Enforcement Authority so that it applies appropriately to a company limited by guarantee (CLG).

• Section 393 requires statutory auditors to report suspected category 1 and category 2 offences to the Registrar of Companies and the Corporate Enforcement Authority.
• This reporting obligation applies equally to the statutory auditors of a company limited by guarantee (CLG).
• The only modification is that references to "its shareholders" in section 393(4) are read as "its members" when applied to a CLG.
• This change reflects the fact that a CLG does not have shareholders holding shares; instead, it has members who guarantee its liabilities up to a specified amount.