Companies (Auditing and Accounting) Act 2003
Amendment of section 187 of Act of 1990 (qualifications for appointment as auditor). |
35.—Section 187 of the Act of 1990 is amended as follows: | |
(a) by inserting the following after subsection (1): | ||
“(1A) A firm shall be qualified for appointment as auditor of a company or as a public auditor if— | ||
(a) at least one member of the firm is entitled to hold a practising certificate from a body referred to in subparagraph (i), (ii) or (iii) of subsection (1)(a) and is otherwise qualified under the applicable subparagraph for appointment as auditor of a company or as a public auditor, and | ||
(b) the particulars required by sections 199 and 200 in respect of such a member have been forwarded to the registrar of companies. | ||
(1B) A body referred to in subsection (1A) may grant a practising certificate to a firm that satisfies the conditions in that subsection, and, if a practising certificate is granted— | ||
(a) each member of the firm who from time to time during the currency of the certificate is qualified for appointment as auditor of a company or as a public auditor is deemed to hold the certificate, and | ||
(b) the name of such a member is deemed to be entered in the register of auditors.”; | ||
(b) in subsection (2), by substituting “corporate,” for “corporate.” in paragraph (g) and by inserting the following after paragraph (g): | ||
“(h) a person in whose name a share in the company is registered, whether or not that person is the beneficial owner of the share,”; | ||
(c) by inserting the following after subsection (13) (inserted by section 72 of the Company Law Enforcement Act 2001 ): | ||
“(14) An authorisation granted to a person under subsection (1)(a)(iv) ceases to have effect on the expiry of 3 years after the commencement of this subsection unless, within that 3 year period, the person becomes a member of, or becomes subject to the regulations of, a body of accountants recognised for the purposes of section 187. | ||
(15) On an authorisation ceasing to have effect under subsection (14), the person to whom it was granted ceases to be qualified for appointment as auditor of a company or as a public auditor.”. |