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PART IIAUDITORS, ACCOUNTS, DIRECTORS' LIABILITIES AND INVESTIGATIONS

CHAPTER IAUDITORS

Delegation of functions of Department in relation to auditors

Supplementary provisions about delegation orders

7.—(1) Schedule 13 to the 1990 Order (supplementary provisions with respect to delegation orders) is amended as follows.

(2) For paragraph 1 substitute—

Operation of this Schedule

1.(1) This Schedule has effect in relation to a body designated by an order under Article 48 as follows—

(a)paragraphs 2 to 12 have effect in relation to the body where it is established by the order;

(b)paragraphs 2 and 6 to 11 have effect in relation to the body where it is an existing body (see Article 48(1A)(b)); and

(c)paragraph 13 has effect in relation to the body where it is an existing body that is an unincorporated association.

(2) In their operation in accordance with sub-paragraph (1)(b), paragraphs 2 and 6 apply only in relation to—

(a)things done by or in relation to the body in or in connection with the exercise of functions transferred to it by the order, and

(b)functions of the body which are functions so transferred.

(3) Any power conferred by this Schedule to make provision by order is a power to make provision by an order under Article 48..

(3) In paragraph 10 (report and accounts)—

(a)after sub-paragraph (2) insert—

(2A) The following provisions of this paragraph apply as follows—

(a)sub-paragraphs (3) and (4) apply only where the body is established by the order, and

(b)sub-paragraphs (5) and (6) apply only where the body is an existing body.; and

(b)after sub-paragraph (4) insert—

(5) Unless the body is a company to which Article 234 of the 1986 Order (duty to prepare individual company accounts) applies—

(a)the Department may, with the consent of the Department of Finance and Personnel, give directions to the body with respect to its accounts and the audit of its accounts, and

(b)it is the duty of the body to comply with the directions.

(6) Whether or not the body is a company to which Article 234 of the 1986 Order applies—

(a)the Department may give directions to the body providing that any provisions of that Order specified in the directions are to apply to the body, with or without any modifications so specified, and

(b)it is the duty of the body to comply with the directions..

(4) In paragraph 11 (other supplementary provisions), for “established” (in both places) substitute “designated”.

(5) After paragraph 12 insert—

13.(1) This paragraph applies where the body is an unincorporated association.

(2) Any relevant proceedings may be brought by or against the body in the name of any body corporate whose constitution provides for the establishment of the body.

(3) In sub-paragraph (2) “relevant proceedings” means proceedings brought in or in connection with the exercise of any transferred function.

(4) In relation to proceedings brought as mentioned in sub-paragraph (2), any reference in paragraph 11(3)(e) or (4)(c) to the body replacing or being replaced by the Department in any legal proceedings is to be read with the appropriate modifications..