Companies Act 2014 section 334

Right of members to require audit despite audit exemption otherwise being available

Section 334 gives minority shareholders the right to require a full statutory audit of a company, even where the company would otherwise qualify for an audit exemption.

• Members holding at least one-tenth of the total voting rights may serve written notice on the company requiring an audit for a specified financial year
• The notice must be served either during the preceding financial year or during the relevant financial year itself, but no later than one month before that year ends
• Where the company is a subsidiary, the notice applies only to that subsidiary and does not affect whether the parent company or other group undertakings may still avail of the audit exemption
• This right does not extend to the separate dormant company audit exemption under section 365