Companies Act 2014 section 400

Resignation of statutory auditors: general

Section 400 sets out the rules and procedures that apply when statutory auditors resign from office or indicate that they do not wish to be re-appointed, including the required content of resignation notices and the obligations to notify the Registrar, members and creditors.

• Statutory auditors may resign by serving a written notice on the company, which must include either a statement that there are no circumstances to report or a statement setting out relevant circumstances connected with the resignation
• Within 14 days of serving the notice, the auditors must send a copy to the Registrar, and if the notice reports circumstances of concern, the company must send a copy to all persons entitled to receive statutory financial statements
• The same rules apply where auditors indicate their unwillingness to be re-appointed, with the notice relating to that unwillingness rather than a resignation
• Failure to comply with these requirements is a category 3 offence, applying to the auditors, the company and its officers (including shadow directors and de facto directors) as appropriate

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