Reviewed case brief
Re London and General Bank (No 2)
[1895] 2 Ch 673
The Court of Appeal held that an auditor's primary duty is to the shareholders collectively, not to the directors. The auditor must be honest, must exercise reasonable care and skill, and must report to shareholders any matter which they ought to know — even if this displeases the directors. Merely
- Court
- Court of Appeal
- Year
- 1895
- Subjects
- Company Law
- Reviewed
- 2026-06-30
Rule established
An auditor's duty is to report to shareholders, not merely to directors; the auditor must form an independent opinion and report any matter that shareholders ought to know.
Facts
Issues
Held
Ratio decidendi
How to use it in an exam
Editorial source
[1895] 2 Ch 673
Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.