Part 16Audit

Chapter 5Quoted companies: right of members to raise audit concerns at accounts meeting

527Members' power to require website publication of audit concerns

(1)

The members of a quoted company may require the company to publish on a website a statement setting out any matter relating to—

(a)

the audit of the company's accounts (including the auditor's report and the conduct of the audit) that are to be laid before the next accounts meeting, or

(b)

any circumstances connected with an auditor of the company ceasing to hold office since the previous accounts meeting,

that the members propose to raise at the next accounts meeting of the company.

(2)

A company is required to do so once it has received requests to that effect from—

(a)

members representing at least 5% of the total voting rights of all the members who have a relevant right to vote (excluding any voting rights attached to any shares in the company held as treasury shares), or

(b)

at least 100 members who have a relevant right to vote and hold shares in the company on which there has been paid up an average sum, per member, of at least £100.

See also section 153 (exercise of rights where shares held on behalf of others).

(3)

In subsection (2) a “relevant right to vote” means a right to vote at the accounts meeting.

(4)

A request—

(a)

may be sent to the company in hard copy or electronic form,

(b)

must identify the statement to which it relates,

(c)

must be authenticated by the person or persons making it, and

(d)

must be received by the company at least one week before the meeting to which it relates.

(5)

A quoted company is not required to place on a website a statement under this section if, on an application by the company or another person who claims to be aggrieved, the court is satisfied that the rights conferred by this section are being abused.

(6)

The court may order the members requesting website publication to pay the whole or part of the company's costs (in Scotland, expenses) on such an application, even if they are not parties to the application.