Companies Act 2014 section 931B

Provisions that apply when recognised accountancy body is not able to perform Part 27 function

Section 931B sets out the arrangements that apply when a recognised accountancy body is unable to carry out its regulatory functions under Part 27 or Part 28 of the Act, including how those functions are reassigned, how obligations transfer, and how costs are allocated.

• The Supervisory Authority (IAASA) may step in to perform the functions that the unable body ("Body A") cannot carry out, or may assign those functions to another recognised accountancy body ("Body B") that is capable of performing them.
• Any obligations that affected statutory auditors previously owed to Body A in relation to those functions transfer automatically to whichever body — the Supervisory Authority or Body B — is now performing the functions.
• Body A remains liable for the costs incurred by the Supervisory Authority or Body B in performing the reassigned functions, and the Supervisory Authority may recover unpaid costs through the courts as a simple contract debt.
• Body A may appeal the Supervisory Authority's determination of costs to the court, but must do so within three months of being notified of the decision.