SCHEDULES
C1 SCHEDULE 11F1 Auditors: Appointment, Tenure...
Sch. 11 excluded by S.I. 1986/2168, art. 12(a)
Appointment
F23B
1
This paragraph applies to the appointment of an auditor or auditors under section 77, where the building society has an audit committee.
2
Before an appointment to which this paragraph applies is made—
a
the audit committee of the building society must make a recommendation to the directors in connection with the appointment, and
b
the directors must propose an auditor or auditors for appointment F4...
3
Before the audit committee makes a recommendation or the directors make a proposal under sub-paragraph (2), the committeeF5... must carry out a selection procedure in accordance with Article 16(3) of the Audit Regulation.
4
The audit committee must in its recommendation—
a
identify its first and second choice candidates for appointment, F6drawn from those auditors who have participated in a selection procedure under sub-paragraph (3),
b
give reasons for the choices so identified,
c
state that—
i
the recommendation is free from influence by a third party, and
ii
no contractual term of the kind mentioned in F7Article 16(6) of the Audit Regulation has been imposed on the building society.
F35
The directors must include in their proposal—
a
the recommendation made by the audit committee in connection with the appointment, and
b
if the proposal of the directors departs from the preference of the audit committee—
i
a recommendation for a candidate or candidates for appointment drawn from those auditors who have participated in a selection procedure under sub-paragraph (3), and
ii
the reasons for not following the audit committee’s recommendation.
6
Where the audit committee recommends re-appointment of the society’s existing auditor or auditors, and the directors are in agreement, sub-paragraphs (3) and (4)(a) and (b) do not apply.
Words in Sch. 11 heading omitted (6.4.2008) by virtue of The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 14(a), Sch. 2 (with arts. 6, 11, 12)