SCHEDULE 10Recognised supervisory bodies
Part 2Requirements for recognition of a supervisory body
Holding of appropriate qualification
7
(1)
This paragraph explains what is meant in paragraph 6(1)(b) by a firm being “controlled by qualified persons”.
(2)
In this paragraph references to a person being qualified are—
F1(a)
in relation to an individual, to that individual's—
(i)
holding an appropriate qualification, or
(ii)
being a third country auditor and meeting the requirements of paragraph 6(1)(aa)(ii) or 6(1A);
(3)
A firm is to be treated as controlled by qualified persons if, and only if—
(a)
a majority of the members of the firm are qualified persons, and
(b)
where the firm's affairs are managed by a board of directors, committee or other management body, a majority of that body are qualified persons or, if the body consists of two persons only, at least one of them is a qualified person.
(4)
A majority of the members of a firm means—
(a)
where under the firm's constitution matters are decided upon by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters;
(b)
in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.
(5)
A majority of the members of the management body of a firm means—
(a)
where matters are decided at meetings of the management body by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters at such meetings;
(b)
in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.
(6)
Paragraphs 5 to 11 of Schedule 7 to this Act (rights to be taken into account and attribution of rights) apply for the purposes of this paragraph.