Part 16Audit
Chapter 4Removal, resignation, etc of auditors
Statement by auditor on ceasing to hold office
523Duty of company to notify appropriate audit authority
1
Where an auditor ceases to hold office before the end of his term of office, the company must notify the appropriate audit authority.
2
The notice must—
a
inform the appropriate audit authority that the auditor has ceased to hold office, and
b
be accompanied by—
i
a statement by the company of the reasons for his ceasing to hold office, or
ii
if the copy of the statement deposited by the auditor at the company’s registered office in accordance with section 519 contains a statement of circumstances in connection with his ceasing to hold office that need to be brought to the attention of members or creditors of the company, a copy of that statement.
3
The company must give notice under this section not later than 14 days after the date on which the auditor’s statement is deposited at the company’s registered office in accordance with section 519.
4
If a company fails to comply with this section, an offence is committed by—
a
the company, and
b
every officer of the company who is in default.
5
In proceedings for such an offence it is a defence for the person charged to show that he took all reasonable steps and exercised all due diligence to avoid the commission of the offence.
6
A person guilty of an offence under this section is liable—
a
on conviction on indictment, to a fine;
b
on summary conviction, to a fine not exceeding the statutory maximum.