Companies Act 2014 section 385

Appointment of statutory auditors: failure to appoint

Section 385 deals with what happens when a company's members fail to appoint statutory auditors at an annual general meeting, and provides that the Corporate Enforcement Authority may step in to appoint auditors in such circumstances.

• Where members fail to appoint statutory auditors at an AGM and the company cannot avail of the audit exemption, the Corporate Enforcement Authority may appoint one or more persons to fill the role.
• The company must notify the Authority in writing within one week of the Authority's power becoming exercisable, and must notify the Registrar within 14 days if a resolution removing statutory auditors is passed.
• Failure to give the required notices is a category 3 offence for the company and any officer in default.
• Auditors appointed by the Authority hold office only until the conclusion of the next AGM following their appointment.