[F1391A Rights of auditors who are removed or not re-appointed. E+W+S
(1)Special notice is required for a resolution at a general meeting of a company—
(a)removing an auditor before the expiration of his term of office, or
(b)appointing as auditor a person other than a retiring auditor.
(2)On receipt of notice of such an intended resolution the company shall forthwith send a copy of it to the person proposed to be removed or, as the case may be, to the person proposed to be appointed and to the retiring auditor.
(3)The auditor proposed to be removed or (as the case may be) the retiring auditor may make with respect to the intended resolution representations in writing to the company (not exceeding a reasonable length) and request their notification to members of the company.
(4)The company shall (unless the representations are received by it too late for it to do so)—
(a)in any notice of the resolution given to members of the company, state the fact of the representations having been made, and
(b)send a copy of the representations to every member of the company to whom notice of the meeting is or has been sent.
(5)If a copy of any such representations is not sent out as required because received too late or because of the company’s default, the auditor may (without prejudice to his right to be heard orally) require that the representations be read out at the meeting.
(6)Copies of the representations need not be sent out and the representations need not be read at the meeting if, on the application either of the company or of any other person claiming to be aggrieved, the court is satisfied that the rights conferred by this section are being abused to secure needless publicity for defamatory matter; and the court may order the company’s costs on the application to be paid in whole or in part by the auditor, notwithstanding that he is not a party to the application.]
Textual Amendments
F1New ss. 391–393 inserted (subject to the savings and transitional provisions in S.I. 1990/355, arts. 4, 10, Sch. 4) by Companies Act 1989 (c. 40, SIF 27), ss. 118, 122 as part of the text inserted to replace Chapter V of Part XI (as mentioned in s. 118 of the 1989 Act)
Modifications etc. (not altering text)
C1Ss. 391–393 applied with modifications by S.I. 1985/680, regs. 4–6, Sch.
C2S. 391A applied (with modifications) (6.4.2001) by S.I. 2001/1090, reg. 4, Sch. 2 Pt. I