Part 16Audit
Chapter 4Removal, resignation, etc of auditors
Statement by auditor on ceasing to hold office
520Company's duties in relation to statement
(1)
This section applies where the statement deposited under section 519 states the circumstances connected with the auditor's ceasing to hold office.
(2)
The company must within 14 days of the deposit of the statement either—
(a)
send a copy of it to every person who under section 423 is entitled to be sent copies of the accounts, or
(b)
apply to the court.
(3)
If it applies to the court, the company must notify the auditor of the application.
(4)
If the court is satisfied that the auditor is using the provisions of section 519 to secure needless publicity for defamatory matter—
(a)
it shall direct that copies of the statement need not be sent out, and
(b)
it may further order the company's costs (in Scotland, expenses) on the application to be paid in whole or in part by the auditor, even if he is not a party to the application.
The company must within 14 days of the court's decision send to the persons mentioned in subsection (2)(a) a statement setting out the effect of the order.
(5)
If no such direction is made the company must send copies of the statement to the persons mentioned in subsection (2)(a) within 14 days of the court's decision or, as the case may be, of the discontinuance of the proceedings.
(6)
In the event of default in complying with this section an offence is committed by every officer of the company who is in default.
(7)
In proceedings for such an offence it is a defence for the person charged to show that he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.
(8)
A person guilty of an offence under this section is liable—
(a)
on conviction on indictment, to a fine;
(b)
on summary conviction, to a fine not exceeding the statutory maximum.