Section 414

(1) Where a company has a subsidiary, then-

(a) if the subsidiary is a body corporate, incorporated in Nigeria, it is the duty of the subsidiaries and its auditors to give the auditors of the holding company such information and explanation as those auditors may reasonably require for the purposes of their duties as auditors of the holding company; and

(b) in any other case, it is the duty of the holding company, if required by its auditors to do so, to take all such steps as are reasonably open to it to obtain from the subsidiary such information and explanation mentioned in paragraph (a).

(2) If a subsidiary or holding company fails to comply with the provisions of subsection

(1) , the subsidiary or holding company, and each officer are liable to a penalty as the Commission shall specify in its regulations, and if an auditor fails without reasonable excuse to comply with subsection (1) (a), he is so liable.