Companies Act 2014 section 394

Removal of statutory auditors: general meeting

Section 394 sets out the procedure by which a company may remove its statutory auditor at a general meeting and appoint a replacement.

• A company may remove its statutory auditor by passing an ordinary resolution at a general meeting and appoint a replacement in their place.
• The replacement auditor must have been nominated by a member of the company and must be qualified to act as a statutory auditor under Part 27 of the Companies Act 2014.
• Notice of the nomination of the proposed replacement auditor must be given to the company's members before the meeting.
• The removal is subject to the restrictions set out in section 395 and does not affect any rights the outgoing auditor may have in connection with their removal.