Raising audit concerns at AGMs

June 2008

A key theme of the Company Law Review was to increase transparency and enhance shareholder engagement. Building on that theme, the Companies Act 2006 has introduced new rights and mechanisms for shareholders of quoted companies to raise concerns about the audit of the company’s accounts, or the departure of an auditor, in advance of a company's annual general meeting. 

This guidance produced jointly by PwC and law firm Herbert Smith sets out these rights in more detail and explains the obligations for quoted companies. It focuses on key questions that directors might ask, including:

• Who should respond to questions raised under the new provisions?
• Can anyone prevent publication on the company’s website of the concerns raised?
• Is this the best way for shareholders to raise audit-related matters?