Opt-in / out of audit

"Prior to 1 April 2014 companies were required to audit their financial statements unless the shareholders resolved not to appoint an auditor (s162(2) of the Companies Act).  Traditionally this was included with the standard AGM minutes which were often distributed pro-forma with the annual accounts.

However, as of 1 April 2014, with the introduction of the Financial Reporting Amendment Act 2014, this has changed.

Companies with less than 10 shareholders do not require their financial statements to be audited but may opt in to that audit requirement (see s207K) and companies with 10 or more shareholders ordinarily require their financial statements to be audited may opt out (see s207I).  There are different considerations for large companies (s45 Financial Reporting Act 2013) and public companies.  The opting must be done in each accounting period and must be done by the earlier of 6 months from the start date of the accounting period or the AGM held within that period (see s207H).  If the AGM is within 6 months of the new year (which is quite common) then it can be done in the AGM resolution.  Otherwise, it must be done by separate resolution.  It is important to note that in each case the opting is undertaken by way of shareholder resolution and requires 95% support.

Finally the opting only applies for the given reporting period so must be repeated each year where relevant."

Cessation of director

We became aware of a difference in the interpretation of resignation date with respect to director resignations lodged with the NZ Companies Office.  We interpret date of resignation as the last day of being a director while the alternative interpretation as employed by the Companies Office is the first date of no longer being a director.  Our interpretation caters for appointments and resignations on the same day. 

To account for this, as of October 6 2016, we began recording the last day of directorship as one day prior to that reported by the Companies Office.  For example, if the Companies Office reports that a director ceased on June 23 2015 then we will report the last day being June 22 2015.
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