Companies Act 2006

[F1 519A Meaning of “public interest company”, “non-public interest company” and “exempt reasons” U.K.

(1) In this Chapter—

• “ public interest company ” means a company—

  (a)

  any of whose transferable securities are included in the official list (within the meaning of Part 6 of the Financial Services and Markets Act 2000), or

  (b)

  any of whose equity share capital is officially listed in an EEA state;

• “ non-public interest company ” means a company that is not a public interest company.

(2) For the purposes of the definition of “public interest company”, “ transferable securities ” means anything which is a transferable security for the purposes of Directive 2004/39/ EC of the European Parliament and of the Council on markets in financial instruments.

(3) In the application of this Chapter to an auditor (“A”) of a company ceasing to hold office, the following are “exempt reasons”—

(a) A is no longer to carry out statutory audit work within the meaning of Part 42 (see section 1210(1));

(b) the company is, or is to become, exempt from audit under section 477, 479A or 480, or from the requirements of this Part under section 482, and intends to include in its balance sheet a statement of the type described in section 475(2);

(c) the company is a subsidiary undertaking of a parent undertaking that is incorporated in the United Kingdom and—

(i) the parent undertaking prepares group accounts, and

(ii) A is being replaced as auditor of the company by the auditor who is conducting, or is to conduct, an audit of the group accounts;

(d) the company is being wound up under Part 4 of the Insolvency Act 1986 or Part 5 of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19)), whether voluntarily or by the court, or a petition under Part 4 of that Act or Part 5 of that Order for the winding up of the company has been presented and not finally dealt with or withdrawn.

(4) But the reason described in subsection (3)(c) is only an exempt reason if the auditor who is conducting, or is to conduct, an audit of the group accounts is also conducting, or is also to conduct, the audit (if any) of the accounts of each of the subsidiary undertakings (of the parent undertaking) that is incorporated in the United Kingdom and included in the consolidation.

(5) The Secretary of State may by order amend the definition of “public interest company” in subsection (1).

(6) An order under subsection (5) is subject to negative resolution procedure.]

Textual Amendments

F1 S. 519A inserted (1.10.2015) by Deregulation Act 2015 (c. 20), ss. 18(3), 115(7); S.I. 2015/1732, art. 2(d) (with arts. 4, 6)