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Companies Act 1993

Accounting records and financial reporting - Miscellaneous auditing provisions

207W: Auditor's attendance at shareholders' meeting

You could also call this:

“Auditors must be allowed to attend and speak at shareholder meetings”

The company’s board must make sure the auditor can come to meetings where shareholders are present. They need to send the auditor the same notices and messages about these meetings that shareholders get. At these meetings, the auditor is allowed to speak about any part of the meeting that involves their work as an auditor.

If the board doesn’t do these things, each director of the company is breaking the law. They could be found guilty of an offence and face a punishment. The punishment for this is explained in section 374(2) of the Companies Act 1993.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6041598.

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Part 11 Accounting records and financial reporting
Miscellaneous auditing provisions

207WAuditor's attendance at shareholders' meeting

  1. The board of a company must ensure that an auditor of the company—

  2. is permitted to attend a meeting of shareholders of the company; and
    1. receives the notices and communications that a shareholder is entitled to receive that relate to a meeting of shareholders; and
      1. may be heard at a meeting of shareholders that the auditor attends on any part of the business of the meeting that concerns the auditor as auditor.

        1. If the board of a company fails to comply with subsection (1), every director of the company commits an offence and is liable on conviction to the penalty set out in section 374(2).

        Notes
        • Section 207W: inserted, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).