Companies Act 2014 section 1624

Removal of statutory auditors from carrying out assurance of sustainability reporting of public-interest entities

Section 1624 sets out who may apply to the High Court to remove a statutory auditor or audit firm from carrying out sustainability reporting assurance for a public-interest entity, the grounds on which such an application may be made, and the restrictions on what constitutes valid grounds.

• Shareholders holding 5% or more of the voting rights or share capital, or the Supervisory Authority, may apply to the High Court to remove the auditor or audit firm carrying out sustainability reporting assurance for a public-interest entity, provided there are good and substantial grounds.
• Valid grounds must relate either to the conduct of the auditor or audit firm in performing their sustainability assurance duties (or otherwise), or to the petitioner's belief that removal is in the best interests of the entity.
• Differences of opinion on sustainability reporting treatments or assurance procedures do not constitute valid grounds for removal.
• The "best interests" argument cannot be used as a pretext for avoiding disclosures or concealing breaches of the Companies Act.