Explanatory note

These Regulations amend the Companies Act 1985 (Disclosure of Remuneration for Non-Audit Work) Regulations 1991 (the “1991 Regulations”) which require disclosure in notes to a company’s annual accounts of remuneration of a company’s auditors and their associates for non-audit work done for the company and its associated undertakings.

Regulation 4 amends the definition of “associate” of a company’s auditors contained in the 1991 Regulations to exclude any body corporate in respect of which any partner in or director of the company’s auditors, was at any time in the relevant financial year entitled to exercise, or control the exercise of, 20 per cent or more of the voting rights at any general meeting solely in his capacity as an insolvency practitioner, a receiver, a receiver or manager, or a judicial factor.