Audit report irregularities and incomplete records led to a stay on adoption of company accounts at the AGM.

The Tribunal found a prima facie concern that the audited accounts relied on pre-transfer shareholding data and incomplete records, while a rectification petition regarding the member register remained pending. It noted deficiencies in supporting documentation, including missing confirmations, deeds, vouchers, statutory registers and proper record maintenance, and considered that the audit report appeared to have mixed up entries on that basis. The scheduled AGM adoption of the accounts was therefore stayed until the next date of hearing.

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Issues: Whether the adoption of the company accounts at the scheduled AGM should be stayed on the ground that the audited report appeared to have relied on pre-transfer data and incomplete records.

Analysis: The material placed before the Tribunal showed that the auditors had reflected shareholding positions which had already been the subject of earlier proceedings and that one rectification petition concerning the member register was pending. The audit report also noted substantial deficiencies in supporting records, including absence of certain confirmations, deeds, vouchers, statutory registers and proper maintenance of records. On that basis, the Tribunal formed a prima facie view that the audited report had mixed up entries by relying on pre-transfer data.

Conclusion: The adoption of the accounts at the scheduled AGM was stayed until the next date of hearing.

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