C5C4C7C3C9C8C6C2Part 16Audit

Annotations:
Modifications etc. (not altering text)
C5

Pt. 16 applied (with modifications) (8.12.2017) by The Risk Transformation Regulations 2017 (S.I. 2017/1212), regs. 1(2), 162, 163 (with reg. 189)

C3

Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))

Chapter 6Auditors' liability

Liability limitation agreements

C1I1535Terms of liability limitation agreement

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.