(1)Subject to subsection (2) below, this section applies to every body which is both a company and a trade union or employers' association to which section 11 of the [1974 c. 52.] Trade Union and Labour Relations Act 1974 applies.
(2)Where any such body as is mentioned in subsection (1) above has auditors who were appointed, before the coming into operation of this section, under subsection (3) of the said section 11 (duty to appoint auditors), this section shall not apply to that body until—
(a)the term of office of those auditors expires, or
(b)auditors are next appointed by or on behalf of that body under section 14(1) or (2) above,
whichever of those events first occurs.
(3)Subsection (3) of the said section 11 and paragraphs 6 to 15 of Schedule 2 to the said Act of 1974 (qualifications, appointment and removal of auditors) shall cease to have effect in relation to bodies to which this section applies.
(4)The rights and powers conferred, and the duties imposed, by paragraphs 16 to 21 of the said Schedule 2 on the auditors of a body to which this section applies shall belong to the auditors from time to time appointed by or on behalf of that body under section 14 above.