535Terms of liability limitation agreementU.K.
(1)A liability limitation agreement—
(a)must not apply in respect of acts or omissions occurring in the course of the audit of accounts for more than one financial year, and
(b)must specify the financial year in relation to which it applies.
(2)The Secretary of State may by regulations—
(a)require liability limitation agreements to contain specified provisions or provisions of a specified description;
(b)prohibit liability limitation agreements from containing specified provisions or provisions of a specified description.
“Specified” here means specified in the regulations.
(3)Without prejudice to the generality of the power conferred by subsection (2), that power may be exercised with a view to preventing adverse effects on competition.
(4)Subject to the preceding provisions of this section, it is immaterial how a liability limitation agreement is framed.
In particular, the limit on the amount of the auditor's liability need not be a sum of money, or a formula, specified in the agreement.
(5)Regulations under this section are subject to negative resolution procedure.
Modifications etc. (not altering text)
C1Ss. 484-539 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 11 (with transitional provisions and savings in regs. 7, 9, Sch. 2)
Commencement Information
I1S. 535 wholly in force at 6.4.2008; s. 535 not in force at Royal Assent, see s. 1300; s. 535 in force for specified purposes at 20.1.2007 by S.I. 2006/3428, art. 3(3) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5); s. 535 in force at 6.4.2008 by S.I. 2007/3495, art. 3(1)(d) (with arts. 7, 12, Sch. 4 paras. 9-19)