UK: GSK plc seeks approval not to state name of senior statutory auditor

Section 503 of the Companies Act (2006) provides that the auditor's report must state the name of the auditor and be signed and dated. Where the auditor is an individual, he must sign the report; where the auditor is a firm, the senior statutory auditor must sign the report in his own name for and on behalf of the firm.

 

Section 506 provides that the name of the individual auditor or senior statutory auditor may be omitted from the report where publication would create, or be likely to create, the serious risk of the auditor being subjected to violence or intimidation. A shareholder resolution is required and notice of the resolution must be provided to the Secretary of State for BERR.  

The Manifest blog has reported that at this week's annual general meeting of GSK plc, shareholders will be asked to vote on a resolution to omit the senior statutory auditor's name from the audit report. The following explanation is provided in the AGM explanatory notes:

For many years, the company and its legacy companies, together with its employees, have been the focus of protests by various animal protection groups, some of which have engaged in aggressive, abusive and hostile acts. The Directors therefore believe that it is appropriate that the company should seek to utilise the confidentiality afforded to the senior statutory auditor of the company’s Auditors under the new legislation. This resolution therefore seeks shareholder approval for the Auditors’ reports for the financial year ending 31st December 2009 to omit the name of the senior statutory auditor. The company would give notice to the Secretary of State in the appropriate format if this resolution is passed".

According to Manifest, this may well be the first example of a listed company taking advantage of Section 506. 

Update (20 May 2009): the voting results are available here.