1213Effect of ineligibilityU.K.
(1)No person may act as statutory auditor of an audited person if he is ineligible for appointment as a statutory auditor.
(2)If at any time during his term of office a statutory auditor becomes ineligible for appointment as a statutory auditor, he must immediately—
(a)resign his office (with immediate effect), and
(b)give notice in writing to the audited person that he has resigned by reason of his becoming ineligible for appointment.
(3)A person is guilty of an offence if—
(a)he acts as a statutory auditor in contravention of subsection (1), or
(b)he fails to give the notice mentioned in paragraph (b) of subsection (2) in accordance with that subsection.
(4)A person guilty of an offence under subsection (3) is liable—
(a)on conviction on indictment, to a fine;
(b)on summary conviction, to a fine not exceeding the statutory maximum.
(5)A person is guilty of an offence if—
(a)he has been convicted of an offence under subsection (3)(a) or this subsection, and
(b)he continues to act as a statutory auditor in contravention of subsection (1) after the conviction.
(6)A person is guilty of an offence if—
(a)he has been convicted of an offence under subsection (3)(b) or this subsection, and
(b)he continues, after the conviction, to fail to give the notice mentioned in subsection (2)(b).
(7)A person guilty of an offence under subsection (5) or (6) is liable—
(a)on conviction on indictment, to a fine;
(b)on summary conviction, to a fine not exceeding [F1one-tenth of the statutory maximum][F1one-tenth of the greater of £5,000 or the amount corresponding to level 4 on the standard scale for summary offences] for each day on which the act or the failure continues.
(8)In proceedings against a person for an offence under this section it is a defence for him to show that he did not know and had no reason to believe that he was, or had become, ineligible for appointment as a statutory auditor.
Textual Amendments
F1Words in s. 1213(7)(b) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 3 para. 9(24) (with reg. 5(1))