Dáil Éireann Debate, Tuesday - 15 October 2013
111. Deputy Martin Heydon asked the Minister for Jobs, Enterprise and Innovation the progress that has been made in considering an extension of the audit exemption to companies limited by guarantee, based on the recommendations of the Company Law Review Group 2009, to facilitate many small charities which are bearing non-proportional audit costs on an annual basis; and if he will make a statement on the matter. [43675/13]
View answerAudit exemption was first introduced under the Companies (Amendment) (No.2) Act 1999, allowing private companies which satisfy certain conditions to be exempt from the audit requirements. Currently, to avail of the exemption, the amount of the turnover of the company must not exceed €8.8million and the balance sheet total of the company must not exceed €4.4million. Both these amounts are the maximum allowed under EU law. The average number of persons employed by the company must not exceed 50. The scope for companies to have an exemption from the requirement to have an audit carried out is set out in EU legislation (4th Company Law Directive).
The Companies Bill 2012 contains a provision to extend the audit exemption to guarantee companies, companies in a group situation and dormant companies which meet the above described thresholds. The Bill passed second stage in the Dáil on 25 April 2013 and committee stage is scheduled for November 2013.
I understand that many community or voluntary groups which have formed themselves as companies have done so as a company limited by guarantee (CLG).
