Any liability to meet capital expenses incurred by a public transport company shall be treated for the purposes of section 94 of the M1Local Government (Scotland) Act 1973 (consent of Secretary of State required for the incurring of liability to meet capital expenses) as a liability to meet capital expenses incurred by that company’s controlling authority.

Subject to the following provisions of this section, it shall be the duty of any public transport company’s controlling authority to exercise their control over that company so as to ensure that the company shall appoint only auditors who, in addition to F1being eligible for such appointment in accordance with Part II of the Companies Act 1989 F1meeting the requirements of Part 42 of the Companies Act 2006 (statutory auditors) , are approved for appointment as auditors of the company by the Commission for Local Authority Accounts in Scotland.

Where a public transport company’s controlling authority are a Passenger Transport Executive, the reference in subsection (1) above to the controlling authority shall be read, in relation to that company, as a reference to the Passenger Transport Authority for that Executive’s area.

References in this section to a public transport company include references to any subsidiary of such a company.

This section applies to Scotland only.