Introduction
- Welcome to our round up of the latest business Templates for our clients. Please contact us if you want to talk about how to use the Templates. We are here to support you through these tough times.
Auditor resignation letter
- Section 516 of the Companies Act 2006 provides that an auditor may resign his office as company auditor by sending written notice to that effect to the company. This template letter acts as the form of notice and informs the company of the auditor’s intention to resign from office. The template is only suitable for private companies, where the auditor is leaving office at the end of the period for appointing auditors or the reasons for leaving are all ‘exempt’, as defined in section 519A(3) of the Companies Act 2006. The requirements for quoted or ‘public interest’ companies, or where the resignation may be disputed, are more complex and cannot be covered by our template letter.
- The notice must include one of two possible statements: that the auditor considers none of the reasons for ceasing to hold office need be brought to the attention of company members and creditors, or a statement that there are circumstances that should be brought to the attention of company members and creditors – in which case details of the reasons for the cessation of office should be provided. This template notice of resignation includes suggested wording for either scenario. The notice must also include details of the auditor’s name and address and their registration number, as quoted on the register of auditors. In circumstances where this template letter is appropriate, the company is not required to inform Companies House of the auditor’s resignation. However, in accordance with section 522 of the Companies Act 2006, the auditor may be required to send a copy of the statement included in the template letter to the appropriate audit authority.
- The template is fully editable. Red font highlights where you should enter or edit any required details. Text contained within red square brackets offers further information on the details you should enter, or alternative wordings which you should select as appropriate to reflect the nature of the transaction.