22(1)In section 31 of the [1982 c. 32.] Local Government Finance Act 1982 (Passenger Transport Executives and their subsidiaries), for subsection (4) (power of Secretary of State to apply Part III of that Act to subsidiaries of Executives) there shall be substituted the following subsection—
“(4)Where a Passenger Transport Executive have a subsidiary, it shall be their duty to exercise their control over that subsidiary so as to ensure that the subsidiary appoints only auditors who, in addition to being qualified for appointment as such auditors in accordance with section 389 of the [1985 c. 6.] Companies Act 1985, are approved by the Commission for appointment as auditors of that subsidiary.”
(2)In subsection (6) of that section, for the words from " the company " to the end there shall be substituted the words " subsection (4) above shall not apply, but it shall be the joint duty of the Executive and the other body or bodies concerned to exercise such control over the company as the Executive are required by that subsection to exercise over a subsidiary of theirs. ".
(3)In section 36(1) of that Act (interpretation of Part III), in the definition of " auditor", after the word " means" there shall be inserted the words " (except in section 31(4) above) ".