The Principal Act is amended by the substitution of the following sections for sections 363 and 364:
"363. Audit exemption (non-group situation) not available in certain cases
(1) Subject to subsection (2) and notwithstanding that section 358 is complied with, a company is not entitled to the audit exemption referred to in that section in respect of its statutory financial statements for the 2 financial years immediately succeeding a financial year (in this section referred to as the ‘relevant financial year’) where the company failed to deliver to the Registrar, in compliance with section 343, the company’s annual return to which the statutory financial statements or (as appropriate) abridged financial statements for the relevant financial year are annexed.
(2) Subsection (1) shall not apply in the case of an annual return of a company which is the company’s first annual return referred to in section 349.
364. Audit exemption (group situation) not available in certain cases
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