The shareholders of our client company sold 70% of the shares to an overseas company in the last financial year just finished. Previously the company was audit exempt small company and would have been in this last year. Is the company now considered to be a subsidary of the overseas company and part of group that will need audit or because it is not wholly owned is still classed as an independant company?
Many thanks for reading and for any answers given.
John
Replies (1)
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Of course, it is a subsidiary
It would be a subsidiary if another company held any more than 50% of its voting share capital.
It would only be exempt from audit if the group of which the company is now a member qualifies as small.