Section 209: Small private companies

209. Small private companies (1) Subject to subsection (5), a small private company need not appoint an auditor or where it does appoint an auditor under subsection (5), that person need not be a qualified auditor unless the resolution referred to in that subsection requires this. (2) Where the shareholders of a small private company resolve under subsection (5) to appoint an auditor, the appointment and removal of the auditor of a small private company shall, subject to this section be made in accordance with sections 200 and 202 and the auditor shall carry out the auditor’s duties in accordance with section 204. (3) An auditor of a small private company may resign by written notice to the directors. (4) Where the auditor gives written notice to resign under subsection (3), the directors shall call a meeting of shareholders or circulate a resolution to the shareholders under section 116 as soon as practicable for the purpose of appointing an auditor in the place of the auditor who desires to resign and on the appointment of another auditor, the resignation shall take effect. (5) Where at, or before the time required for the holding of the annual meeting of a small private company, notice is given to the Board of the company, signed by a shareholder who holds at least 5 per cent of the shares of the company, the company shall appoint an auditor and such resolution shall cease to have effect at the next annual meeting, and the auditor shall thereupon be C35 – 129 [Issue 10] Companies Act reappointed under section 200 unless the shareholders by unanimous resolution agree not to appoint the auditor. Sub-Part C – Financial Statements