Part 7Accounts, audit and annual returns
Auditing of accounts etc
84Power of certain societies to disapply section 83
1
A registered society may by resolution disapply section 83 (duty to appoint auditors) in respect of a year of account if—
a
the total value of its assets at the end of the preceding year of account did not exceed F1£5,100,000, and
b
its turnover for that preceding year did not exceed F2£10,200,000.
2
The resolution must be passed at a general meeting at which—
a
less than 20% of the total votes cast are cast against the resolution, and
b
less than 10% of the society's members for the time being entitled under its rules to vote cast their votes against the resolution.
3
Subsection (1) does not apply to a society that—
a
is a credit union,
b
is a subsidiary,
c
has a subsidiary,
d
holds a deposit or has at any time since the end of the preceding year of account held a deposit (other than a deposit in the form of withdrawable share capital), or
e
is registered in the register of social landlords maintained under section 20(1) of the Housing (Scotland) Act 2010 (asp 17).
4
The FCA may by notice to a society disapply subsection (1) in relation to the year of account in which the notice is given.
5
A resolution under subsection (1) has no effect if, at any time before the end of the year of account to which it relates—
a
the society is within a paragraph of subsection (3), or
b
the society is given a notice under subsection (4).
6
Subsection (1) applies in relation to a registered society that is a charity or recognised body as if for paragraph (b) there were substituted—
b
its gross income for that preceding year did not exceed £250,000.
7
In subsection (6) “recognised body” has the meaning given by article 3(6)(c) of the Charities and Trustee Investment (Scotland) Act 2005 (Consequential Provisions and Modifications) Order 2006 (SI 2006/242).
8
Where a society's year of account is for a period other than a calendar year, the figure in subsection (1)(b) (including that provision as it has effect by virtue of subsection (6)) is to be proportionately adjusted.