Company Law Reform Bill [HL]

moved Amendment No. 305:"After Clause 475, insert the following new clause—" ““APPOINTMENT OF AUDITORS OF PRIVATE COMPANY: GENERAL (1)   An auditor or auditors of a private company must be appointed for each financial year of the company, unless the directors reasonably resolve otherwise on the ground that audited accounts are unlikely to be required. (2)   For each financial year for which an auditor or auditors is or are to be appointed (other than the company’s first financial year), the appointment must be made before the end of the period of 28 days beginning with— (a)   the end of the time allowed for sending out copies of the company’s annual accounts and reports for the previous financial year (see section 405), or (b)   if earlier, the day on which copies of the company’s annual accounts and reports for the previous financial year are sent out under section 404. This is the ““period for appointing auditors””. (3)   The directors may appoint an auditor or auditors of the company— (a)   at any time before the company’s first period for appointing auditors, (b)   following a period during which the company (being exempt from audit) did not have any auditor, at any time before the company’s next period for appointing auditors, or (c)   to fill a casual vacancy in the office of auditor. (4)   The members may appoint an auditor or auditors by ordinary resolution— (a)   during a period for appointing auditors, (b)   if the company should have appointed an auditor or auditors during a period for appointing auditors but failed to do so, or (c)   where the directors had power to appoint under subsection (3) but have failed to make an appointment. (5)   An auditor or auditors of a private company may only be appointed— (a)   in accordance with this section, or (b)   in accordance with section 476 (default power of Secretary of State). This is without prejudice to any deemed re-appointment under section 478.”” On Question, amendment agreed to. Clause 476 [Appointment of auditors of private company: default power of Secretary of State]: