• Limited liability
    housing companies or
    leasehold associations

Appointing an auditor for a limited liability housing company or a leasehold association

According to the Limited Liability Housing Companies Act, a KHT or HT auditor must be appointed for a housing company if:

  • its building or buildings have at least 30 apartments held by shareholders;
  • the Auditing Act (chapter 2) or another act requires the housing company to appoint an auditor; or
  • shareholders with at least a tenth of all shares, or a third of the shares represented at the meeting, require an auditor to be appointed at an annual general meeting or a general meeting where the issue is included in the notice of meeting. 

The Limited Liability Housing Companies Act requires a company that is not obligated to appoint an auditor to appoint a performance auditor, unless this option is expressly excluded in the articles of association. A performance auditor can also be appointed for a company that has an auditor. If the articles of association of such a housing company or leasehold association determine two auditors, a layperson can be appointed as the second auditor (performance auditor) even in companies that must appoint a professional auditor under the Limited Liability Housing Company Act or the Auditing Act. Whenever the articles of association are amended, the provisions concerning the appointment of an auditor and a performance auditor must be updated to meet the company’s needs.

As a rule, housing companies with fewer than 30 apartments may operate without continuous auditing or performance auditing. In such cases, the provisions concerning an auditor must be removed from their articles of association, and the provisions must specifically mention that the company does not appoint a performance auditor. However, according to the Limited Liability Housing Companies Act, a certain minority of shareholders may demand that a performance auditor be appointed.