Please note that the date you requested in the address for this web page is not an actual date upon which a change occurred to this item of legislation. You are being shown the legislation from , which is the first date before then upon which a change was made.
1. No person is eligible for appointment as auditor of an open-ended investment company unless he is also eligible under section 25 of the Companies Act 1989 M1 for appointment as a company auditor.U.K.
Marginal Citations
2.—(1) A person is ineligible for appointment as auditor of an open-ended investment company if he is—U.K.
(a)an officer or employee of the company; or
(b)a partner or employee of such a person, or a partnership of which such a person is a partner.
(2) For the purposes of sub-paragraph (1), an auditor of a company is not to be regarded as an officer or employee of the company.
(3) The power of the Secretary of State to make regulations under section 27 of the Companies Act 1989 (ineligibility on ground of lack of independence) in relation to the appointment of company auditors is to be exercisable in relation to the appointment of auditors of open-ended investment companies—
(a)for like purposes; and
(b)subject to the same conditions.
3.—(1) No person is to act as auditor of a company if he is ineligible for appointment to the office.U.K.
(2) If during his term of office an auditor of a company becomes ineligible for appointment to the office, he must thereupon vacate office and give notice in writing to the company concerned that he has vacated it by reason of ineligibility.
(3) A person who acts as auditor of a company in contravention of sub-paragraph (1) or fails to give notice of vacating his office as required by sub-paragraph (2) is guilty of an offence and liable—
(a)on conviction on indictment, to a fine;
(b)on summary conviction, to a fine not exceeding the statutory maximum.
(4) In the case of continued contravention he is liable on a second or subsequent summary conviction (instead of the fine mentioned in sub-paragraph (3)(b)) to a fine not exceeding £100 in respect of each day on which the contravention is continued.
(5) In proceedings against a person for an offence under this paragraph 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.