(1)None of the following persons shall be appointed as auditor of a society—
(a)an officer or servant of the society;
(b)a person who is a partner of or in the employment of, or who employs, an officer or servant of the society; or
(c)a body corporate.
(2)A person shall also not be appointed as auditor of an industrial and provident society if—
(a)his appointment as auditor of any other industrial and provident society—
(i)which is a subsidiary of that society, or
(ii)of which that society is a subsidiary, or
(iii)which is a subsidiary of the society of which that society is a subsidiary,
is prohibited by virtue of the last preceding subsection; or
(b)he is by virtue of [F1section 389(6) of the Companies Act 1985] disqualified for appointment as auditor of a company which is a subsidiary of that society.
(3)Nothing in this section shall prevent the appointment as auditor of a society of a Scottish firm if none of the partners of the firm is ineligible for appointment as auditor of the society by virtue of any of the provisions of this section.
(4)Any appointment made by a society in contravention of any of those provisions shall not be an effective appointment for the purposes of this Act.
(5)In this section “company” has the same meaning as in section 15 of this Act and references to an officer or servant shall be construed as not including an auditor.
Textual Amendments
F1Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2