Textual Amendments
F1New ss. 384–388A inserted (subject to the savings and transitional provisions in S.I. 1990/355, arts. 4, 10, Sch. 4) by Companies Act 1989 (c. 40, SIF 27), ss. 118, 119(1), 213(2), (as part of the text inserted to replace Chapter V as mentioned in s. 118 of the 1989 Act)
(1)A private company may elect (by elective resolution in accordance with section 379A) to dispense with the obligation to appoint auditors annually.
(2)When such an election is in force the company’s auditors shall be deemed to be re-appointed for each succeeding financial year on the expiry of the time for appointing auditors for that year, unless-
[F3(a)the directors of the company have taken advantage of the exemption conferred by section 249A or 249AA, or]
(b)a resolution has been passed under section 393 to the effect that their appointment should be brought to an end.
(3)If the election ceases to be in force, the auditors then holding office shall continue to hold office-
(a)where section 385 then applies, until the conclusion of the next general meeting of the company at which accounts are laid;
(b)where section 385A then applies, until the end of the time for appointing auditors for the next financial year under that section.
(4)No account shall be taken of any loss of the opportunity of further deemed re-appointment under this section in ascertaining the amount of any compensation or damages payable to an auditor on his ceasing to hold office for any reason.]
Textual Amendments
F2New ss. 384–388A inserted (subject to the savings and transitional provisions in S.I. 1990/355, arts. 4, 10, Sch. 4) by Companies Act 1989 (c. 40, SIF 27), ss. 118, 119(1), 213(2), (as part of the text inserted to replace Chapter V as mentioned in s. 118 of the 1989 Act)
F3S. 386(2)(a) substituted (26.5.2000 with application as mentioned in art. 1(2) of the amending S.I.) by S.I. 2000/1430, regs. 1(2), 8(8)