[F1489BAppointment of auditors of public company: additional requirements for public interest entities without audit committeesU.K.
(1)This section applies to the appointment under section 489(4) of an auditor or auditors of a public company—
(a)which is also a public interest entity; and
(b)which does not have an audit committee.
(2)But it does not apply to the appointment of an Auditor General as auditor or one of the auditors of the company.
(3)Before an appointment to which this section applies is made the directors must propose an auditor or auditors for appointment.
(4) Before the directors make a proposal under subsection (3), the directors must carry out a selection procedure in accordance with Article 16(3) of the Audit Regulation , [F2from which their proposed auditor or auditors must be drawn,] unless the company is—
(a) a small or medium sized enterprise within the meaning in Article 2(1)(f) of Directive 2003/71/EU ; or
(b)a company with reduced market capitalisation within the meaning in Article 2(1)(t) of that Directive.
[F3(5)Subsection (4) does not apply in relation to a proposal to re-appoint the company’s existing auditor or auditors.]]
Textual Amendments
F1Ss. 489A 489B inserted (17.6.2016) by The Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), reg. 1(1)(a), Sch. 3 para. 8 (with reg. 1(12))
F2Words in s. 489B(4) inserted (with effect in accordance with reg. 1(6)(8) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 12(9)(a)
F3S. 489B(5) substituted for s. 489D(5)-(7) (with effect in accordance with reg. 1(6)(8) of the amending S.I.) by The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 12(9)(b)