5.—(1) Subject to sub-paragraph (3), the members of the Society of Lloyd's must appoint the auditor for the aggregate accounts for each financial year, unless the auditor is deemed to be re-appointed in accordance with paragraph 6(2).
(2) For each financial year for which the auditor is to be appointed, the appointment must be made before the end of the period of 28 days beginning with the end of the time allowed under regulation 18(3)(a) for preparing the accounts required by regulation 18. This is the “period for appointing auditors” for the purposes of this Part of this Schedule.
(3) The Council of Lloyd's may appoint an auditor for the aggregate accounts to fill a casual vacancy in the office of auditor.
(4) Where no appointment has been made under paragraph (1) by the end of the period for appointing auditors, and the auditor in office is not deemed to be re-appointed under paragraph 6(2)—
(a)the Council of Lloyd's must within one week from the end of that period give notice in writing to the Authority of that fact; and
(b)the Authority must appoint an auditor for the aggregate accounts to fill the vacancy as soon as possible.
(5) If the Council of Lloyd's fail to give the notice required by this paragraph, an offence is committed by—
(a)the Society of Lloyd's; and
(b)every member of the Council who was in default.
(6) A person guilty of an offence under this paragraph is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.