COMPANY AUDITS

Any company incorporated in the Isle of Man is required, subject to certain turnover or classification criteria, to appoint an auditor and under normal circumstances, the appointment will run from one an annual general meeting until the next. An auditor must be a member of a recognised professional body (Companies Act 1982) and the Isle of Man professional community embraces the United Kingdom’s and International Accounting and Auditing Standards. A Dormant Company may pass a special resolution (by a minimum of 75% of a company’s members/shareholders) exempting itself from the requirement to appoint an auditor. Dormant Company A dormant company is one that has not undertaken a significant accounting transaction since its incorporation or the end of its previous financial period. A significant accounting transaction for these purposes, is any transaction that is required to be entered into a company’s accounting records, e.g. the acquisition of an asset, incurring a an expense or liability, the receipt of income or the introduction of capital. In practice, only private companies that are not engaged in banking, insurance and investment business may seek to be classified as, or deemed to be, a dormant company.

Crossman Trust Company Limited PO Box 1, Portland House, Station Road, Ballasalla, Isle of Man, IM99 6AB, British Islands. Telephone: +44 (0)1624 825805 or 822816, Fax: +44 (0)1624 824570, E-Mail: mail@crossmantrust.com