1214Independence requirementU.K.
(1)A person may not act as statutory auditor of an audited person if one or more of subsections (2), (3) and (4) apply to him.
(2)This subsection applies if the person is—
(a)an officer or employee of the audited person, or
(b)a partner or employee of such a person, or a partnership of which such a person is a partner.
(3)This subsection applies if the person is—
(a)an officer or employee of an associated undertaking of the audited person, or
(b)a partner or employee of such a person, or a partnership of which such a person is a partner.
(4)This subsection applies if there exists, between—
(a)the person or an associate of his, and
(b)the audited person or an associated undertaking of the audited person,
a connection of any such description as may be specified by regulations made by the Secretary of State.
(5)An auditor of an audited person is not to be regarded as an officer or employee of the person for the purposes of subsections (2) and (3).
(6)In this section “associated undertaking”, in relation to an audited person, means—
(a)a parent undertaking or subsidiary undertaking of the audited person, or
(b)a subsidiary undertaking of a parent undertaking of the audited person.
(7)Regulations under subsection (4) are subject to negative resolution procedure.
Modifications etc. (not altering text)
C1S. 1214 applied (15.12.2007) by The Companies (Cross-Border Mergers) Regulations 2007 (S.I. 2007/2974), reg. 9(8)(b)
C2S. 1214 applied (1.1.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), ss. 20, 29, Sch. 2 para. 25(4); S.I. 2011/2576, art. 3(c) (with art. 4)
Commencement Information
I1S. 1214 wholly in force at 6.4.2008; s. 1214 not in force at Royal Assent, see s. 1300; s. 1214 in force for specified purposes at 20.1.2007 by S.I. 2006/3428, art. 3(3) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5); s. 1214 in force at 6.4.2008 by S.I. 2007/3495, art. 3(1)(u) (with savings in arts. 7, 12, Sch. 4 paras. 37-42)