Companies Act 2014 section 389

Offence to make false statements to statutory auditors

Section 389 makes it a criminal offence for company officers and employees to provide false or misleading information to statutory auditors.

• Any officer who knowingly or recklessly provides a statement to the company's statutory auditors that is misleading or materially false commits a category 2 offence.
• The section covers any statement, whether made orally or in writing, that conveys or claims to convey information or explanations the auditors require or are entitled to require under the Act.
• The definition of "officer" is broadly drawn and includes not only directors and executives but also any employee of the company, as well as shadow directors and de facto directors.
• Both deliberate falsehoods and reckless disregard for the truth are caught by this provision — there is no need to prove the person intended to deceive if they were reckless as to accuracy.