Companies Act 2014 section 382

Appointment of statutory auditors — first such appointments and powers of members vis a vis directors

Section 382 deals with how a company's first statutory auditors are appointed and how members can replace auditors chosen by the directors.

• The directors may appoint the company's first statutory auditors at any time before the first annual general meeting (AGM).
• The company may, at a general meeting held before the first AGM, remove auditors appointed by the directors and replace them with auditors nominated by any member, provided at least 14 days' notice of the nomination has been given to members.
• If the directors fail to appoint first auditors, the company itself may do so at a general meeting, at which point the directors' power of appointment ceases.
• However appointed, the first statutory auditors hold office only until the conclusion of the first AGM.