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.”.