Companies Act 2014 section 387

Right to information and explanations concerning company

Section 387 establishes the right of statutory auditors to obtain information and explanations from company officers, and sets out the time limits and consequences for non-compliance with such requests.

• Statutory auditors may require any information or explanations from company officers that they consider necessary to perform their duties
• Officers must respond to requests from the company's own auditors or the auditors of its holding company within two days or face a category 2 offence
• It is a valid defence if the officer can prove it was not reasonably possible to comply within two days, provided they responded as soon as reasonably possible afterwards
• The term "officer" is broadly defined to include employees, shadow directors, and de facto directors of the company

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