Companies (Audit, Investigations and Community …

1 Companies ( audit , Investigations and Community enterprise ) Act 2004 CHAPTER 27 CONTENTSPART 1 auditors , ACCOUNTS, DIRECTORS LIABILITIES AND INVESTIGATIONSCHAPTER 1 AUDITORSR ecognised supervisory bodies1 Additional requirements for recognition of supervisory bodies2 Arrangements to which additional requirements for recognition relateDelegation of Secretary of State s functions in relation to auditors3 Delegation of functions by Secretary of State to new or existing body4 Circumstances in which Secretary of State may delegate functions to existingbody5 Supplementary provisions about delegation ordersAuditors qualifications6 Approval of

2 Overseas qualifications for auditorsServices provided by auditors7 Disclosure of services provided by auditors and related remunerationCompanies ( audit , Investigations and Community enterprise ) Act 2004 (c. 27)iiCHAPTER 2 ACCOUNTS AND REPORTSA uditing of accounts8 auditors rights to information9 Statement in directors report as to disclosure of information to auditorsDefective accounts10 Persons authorised to apply to court in connection with defective accounts11 Disclosure of tax information by Inland Revenue to facilitate application fordeclaration that accounts are defective12 Power of person authorised to require documents.

3 Information andexplanationsDirectors reports13 Power to specify bodies who may issue reporting standardsSupervision of accounts and reports14 Supervision of periodic accounts and reports of issuers of listed securities15 Application of provisions inserted by sections 11 and 12 to bodies appointedunder section 14 Bodies concerned with accounting standards to bodies concerned with accounting standards to pay expenses of bodies concerned with accounting standards from liabilityCHAPTER 3 DIRECTORS LIABILITIES19 Relaxation of prohibition on provisions protecting directors etc.

4 From liability20 Funding of director s expenditure on defending proceedingsCHAPTER 4 INVESTIGATIONS21 Power to require documents and information22 Protection in relation to certain disclosures23 Power to enter and remain on premises24 Failure to comply with certain requirementsCHAPTER 5 SUPPLEMENTARY25 Minor and consequential amendmentsCompanies ( audit , Investigations and Community enterprise ) Act 2004 (c. 27)iiiPART 2 Community INTEREST COMPANIESI ntroductory26 Community interest companies27 Regulator28 Appeal Officer29 Official Property HolderRequirements30 Cap on distributions and interest31 Distribution of assets on winding up32 Memorandum and articles33 Names34 Community interest company reports35 Community interest test and excluded companiesBecoming a Community interest company36 New companies37 Existing Companies : requirements38 Existing Companies : decisions Companies : charities40 Existing Companies .

5 Scottish charitiesSupervision by Regulator41 Conditions for exercise of supervisory powers42 Investigation43 Audit44 Civil proceedings45 Appointment of director46 Removal of director47 Appointment of manager48 Property49 Transfer of shares for winding up51 Dissolution and striking offChange of status52Re-registration53 Ceasing to be a Community interest company54 Becoming a charity or a Scottish charity: requirements55 Becoming a charity or a Scottish charity: decisions an industrial and provident societySupplementary57 Fees58 Extension of provisions about registrar ( audit , Investigations and Community enterprise ) Act 2004 (c.)

6 27)iv59 Information60 Offences61 Orders made by Regulator62 Regulations63 InterpretationPART 3 SUPPLEMENTARY64 Repeals and revocations65 Commencement titleSchedule 1 New Schedule 7B to the Companies Act 1985 Schedule 2 Minor and consequential amendments relating to Part 1 Part 1 Amendments relating to auditorsPart 2 Amendments relating to accounts and reportsPart 3 Amendments relating to investigationsSchedule 3 Regulator of Community Interest CompaniesSchedule 4 Appeal Officer for Community Interest CompaniesSchedule 5 Official Property Holder for Community Interest CompaniesSchedule 6 Community interest Companies : namesSchedule 7 Community interest Companies : investigationsSchedule 8 Repeals and revocationsELIZABETH IIc.

7 27 Companies ( audit , Investigations and Community enterprise ) Act 20042004 CHAPTER 27An Act to amend the law relating to company auditors and accounts, to theprovision that may be made in respect of certain liabilities incurred by acompany s officers, and to company Investigations ; to make provision forcommunity interest Companies ; and for connected purposes.[28th October 2004]E IT ENACTED by the Queen s most Excellent Majesty, by and with the advice andconsent of the Lords Spiritual and Temporal, and Commons, in this presentParliament assembled, and by the authority of the same, as follows: PART 1 auditors , ACCOUNTS, DIRECTORS LIABILITIES AND INVESTIGATIONSCHAPTER 1 AUDITORSR ecognised supervisory bodies1 Additional requirements for recognition of supervisory bodies(1)Part 2 of Schedule 11 to the Companies Act 1989 (c.)

8 40) (requirements forrecognition of supervisory bodies for purposes of provisions relating tocompany auditors ) is amended as follows.(2)After paragraph 7(1) (body must have rules and practices for ensuringcompany audit work is carried out with integrity and without conflicts ofBCompanies ( audit , Investigations and Community enterprise ) Act 2004 (c. 27)Part 1 auditors , accounts, directors liabilities and investigationsChapter 1 Auditors2interest) insert (1A)The body must participate in arrangements within paragraph 17,and the rules and practices mentioned in sub-paragraph (1) abovemust include provision requiring compliance with any standards forthe time being determined under such arrangements.

9 (3)In paragraph 8 (body must have rules and practices as to the technicalstandards to be applied in company audit work), the existing provisionsbecome sub-paragraph (1), and after that sub-paragraph insert (2)The body must participate in arrangements within paragraph 18,and the rules and practices mentioned in sub-paragraph (1) abovemust include provision requiring compliance with any standards forthe time being determined under such arrangements. (4)After paragraph 10 insert Independent monitoring of audits of listed and other major companies10A (1) The body must (a)participate in arrangements within paragraph 19(1), and(b)have rules designed to ensure that members of the body whoperform any company audit functions in respect of majoraudits take such steps as may be reasonably required of themto enable their performance of any such functions to bemonitored by means of inspections carried out under thearrangements.

10 (2) Any monitoring of such persons under the arrangements is to beregarded (so far as their performance of company audit functions inrespect of major audits is concerned) as monitoring of compliancewith the body s rules for the purposes of paragraph 10(1).(3) In this paragraph company audit function and major audit havethe same meaning as in paragraph 19. (5)After paragraph 12 insert Independent investigation for disciplinary purposes of public interest cases12A (1) The body must (a)participate in arrangements within paragraph 20(1), and(b)