The Companies Act 1989 (Eligibility for Appointment as Company Auditor) (Consequential Amendments) Regulations 1991

• Citation: S.I. 1991/1997
• Sections: 82

Section 1 Citation, commencement and interpretation

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(1) These Regulations may be cited as the Companies Act 1989 (Eligibility for Appointment as Company Auditor) (Consequential Amendments) Regulations 1991 and shall come into force on 1st October 1991.

(2) In these Regulations, “ the Act ” means the Companies Act 1989.

Section 2 Consequential amendments

The enactments mentioned in the Schedule to these Regulations shall have effect with the amendments specified therein.

Section 3 Consequential amendments

Where a partnership constituted under the law of England and Wales or under the law of any other country or territory in which a partnership is not a legal person is appointed under any enactment as amended by these Regulations, the provisions of section 26 of the Act apply to the appointment in the same way as they apply to the appointment as company auditor of such a partnership.

Section 4 Transitional provision

None of the amendments specified in the Schedule to these Regulations shall have the effect that a person is required to resign from or otherwise surrender an appointment, or that the appointment of a person must be terminated, before the date on which the person’s appointment would, apart from these Regulations, have expired.

Section 1 Milk Marketing Scheme 1933

In paragraph 53(3) of the Milk Marketing Scheme 1933 (accounts and balance sheets of Milk Marketing Board) for the words “by a member of, or a firm of accountants containing a member of, the Institute of Chartered Accountants of England and Wales or of the Association of Certified Accountants” substitute “by a person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989”.

Section 2 The North of Scotland Milk Marketing Scheme 1934

In section 11 of the North of Scotland Milk Marketing Scheme 1934 (auditor), for subsection (2) substitute–

(2) No person shall be eligible for appointment as Auditor or Auditors unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 3 Industrial Organisation and Development Act 1947

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(1) In section 7 of the Industrial Organisation and Development Act 1947 (reports and accounts of development councils), after subsection (2) insert–

(2A) A person shall not be appointed to audit a council’s accounts unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(2) The above amendment supersedes any provisions of a development council order as to qualification for appointments as auditor of a development council.

Section 4 British Wool Marketing Scheme 1950

In paragraph 66 of the British Wool Marketing Scheme (accounts of Wool Marketing Board) for the words “by a member of one of the Chartered Societies in Scotland or of the Institute of Chartered Accountants in England and Wales or of the Society of Incorporated Accountants and Auditors or of the Corporation of Acountants Limited or of the London Association of Certified Accountants Limited” substitute “by a person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 5 Potato Marketing Scheme 1955

In paragraph 54 of the Potato Marketing Scheme 1955 (accounts of Potato Marketing Board) for the words

by an accountant or firm of accountants appointed by the registered producers at the annual general meeting but no person or firm shall be qualified to be so appointed unless he is a member or in the case of a firm each partner is a member of one or more of the following bodies:–

The Institute of Chartered Accountants in England and Wales.

The Society of Incorporated Accountants.

The Institute of Chartered Accountants of Scotland.

The Association of Certified and Corporate Accountants, or

The Institute of Chartered Accountants in Ireland,

substitute the words “by a person appointed by the registered producers at the annual general meeting but no person shall be qualified to be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989,”.

Section 6 Horticulture Act 1960

In section 14 of the Horticulture Act 1960 (reports and accounts of a relevant organisation), for subsection (3) substitute–

(3) A person shall not be appointed auditor under subsection (2) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 7 Charities Act 1960

In section 8 of the Charities Act 1960 (audit of accounts of charities), in subsection (3) for the words from “being a member” to the end substitute “being a person eligible for appointment as a company auditor under section 25 of the Companies Act 1989”.

Section 8 Professions Supplementary to Medicine Act 1960

In paragraph 18 of the First Schedule to the Professions Supplementary to Medicine Act 1960 (expenses and accounts), for sub-paragraph (4) substitute–

(4) A person shall not be appointed auditor under this paragraph unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 9 Covent Garden Market Act 1961

In section 46 of the Covent Garden Market Act 1961 (reports, accounts and returns), in subsection (3) for the words from “shall not be qualified” to the end substitute “shall not be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 10 Transport Act 1962

In section 24 of the Transport Act 1962 (accounts) in subsection (2) for the words from “shall not be qualified” to the end substitute “shall not be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 11 Betting, Gaming and Lotteries Act 1963

In section 55 of the Betting, Gaming and Lotteries Act 1963 (interpretation etc —general), for the definition of “qualified accountant” in subsection (1) substitute “qualified accountant” means a person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989;

Section 12 Hairdressers (Registration) Act 1964

In section 13 of the Hairdressers (Registration) Act 1964 (accounts), in subsection (1) for the words from “shall be qualified” to the end substitute “shall be appointed under the last foregoing subsection unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 13 Cereals Marketing Act 1965

In section 21 of the Cereals Marketing Act 1965 (report and accounts of Home-Grown Cereals Authority), in subsection (5)(b) for the words from “a person who is a member” to the end substitute “a person who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”

Section 14 Teaching Council (Scotland) Act 1965

In paragraph 13 of Schedule 1 to the Teaching Council (Scotland) Act 1965 (expenses and accounts), for subsection (3) substitute–

(3) No person shall be appointed as an auditor under this paragraph unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 15 Universities (Scotland) Act 1966

In section 12 of the Universities (Scotland) Act 1966 (annual reports and financial statements), for subsections (2) and (3) substitute–

(2) No person shall be appointed as an auditor under this section unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(3) No person shall be appointed as an auditor under this section if he, or where the person in question is a partnership or a body corporate, any partner in the partnership or any director or officer of the body corporate, is a member of the University Court or of the staff of the University concerned.

Section 16 Agriculture Act 1967

In section 19 of the Agriculture Act 1967 (annual report and accounts of Meat and Livestock Commission), for subsection (3) substitute–

(3) A person shall not be appointed auditor under subsection (2) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 17 Development of Inventions Act 1967

In section 12 of the Development of Inventions Act 1967 (accounts and audit) for subsection (3) substitute–

(3) No person shall be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 18 New Towns (Scotland) Act 1968

In section 39 of the New Towns (Scotland) Act 1968 (accounts, audit, annual reports etc), for subsection (3) substitute–

(3) No person shall be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 19 Hearing Aid Council Act 1968

In section 12 of the Hearing Aid Council Act 1968 (expenses, receipts and accounts of Council), for subsection (3) substitute–

(3) A person shall not be appointed under subsection (2) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 20 Friendly and Industrial and Provident Societies Act 1968

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(1) The Friendly and Industrial and Provident Societies Act 1968 shall be amended as follows.

(2) In section 7 (qualified auditors), in subsection (1) for the words from “he is either a member” to the end substitute “he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

(3) In section 8 (restrictions on appointment of auditors)–

(a) paragraph (c) of subsection (1) and subsection (3) shall be deleted; and

(b) in subsection (2) for paragraph (b) substitute–

(b) he is by virtue of section 27 of the Companies Act 1989 ineligible for appointment as auditor of a company which is a subsidiary of that society.

Section 21 Transport Act 1968

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(1) The Transport Act 1968 shall be amended as follows.

(2) In section 14 (accounts of executive), in subsection (2) for the words from “who is a member” to “Board of Trade;” substitute “who is eligible for appointment as a company auditor under section 25 of the Companies Act 1989 or who is a member of the Chartered Institute of Public Finance and Accountancy;”.

(3) In section 41 (financial provisions as to Boards and new Authorities), omit subsection 9.

(4) In Schedule 15 (Channel Tunnel Planning Council), for paragraph 12(2) substitute–

(2) A person shall not be appointed auditor as aforesaid unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 22 Hallmarking Act 1973

In paragraph 19 of Schedule 4 to the Hallmarking Act 1973 (expenses and accounts of the British Hallmarking Council), for sub-paragraph (2) substitute–

(2) No person shall be appointed as auditor under this paragraph unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 23 Local Government (Scotland) Act 1973

Section 97 of the Local Government (Scotland) Act 1973 (Commission for Local Authority Accounts in Scotland) shall be amended as follows–

(a) in subsection (6), omit the word “approved” where it first appears and the words from “and “approved auditor”” to the end; and

(b) for subsection (7) substitute–

(7) A person shall not be appointed as auditor by the Commission under subsection (6) above unless–

(a) he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989; or

(b) he is a member of the Chartered Institute of Public Finance and Accountancy or of any other body of accounts established in the United Kingdom and for the time being approved by the Secretary of State for the purposes of this subsection.

Section 24 Friendly Societies Act 1974

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(1) The Friendly Societies Act 1974 shall be amended as follows.

(2) In section 36 (qualified auditors), in subsection (1) for the words from “he is either a member” to the end substitute “he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

(3) In section 37 (restrictions on appointment of auditors), omit sub-paragraph (c) of paragraph (1) and paragraph (2).

Section 25 Farriers (Registration) Act 1975

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(1) Schedule 1 to the Farriers (Registration) Act 1975 (the Farriers Registration Council), shall be amended as follows.

(2) For sub-paragraph (2) of paragraph 12 substitute–

(2) A person shall not be appointed an auditor of the Council unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(2) In sub-paragraph (3) of paragraph 12, omit paragraph (c) and the words “but a Scottish firm may act as auditor of the Council if each partner of the firm is qualified so to act.”.

Section 26 Industry Act 1975

In sub-paragraph (2) of paragraph 7 of Schedule 2 to the Industry Act 1975 (accounts and audit of the National Enterprise Board), for the words from “and a person shall not be qualified” to the end substitute “and a person shall not be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989 or is a member of a body of accountants established in the United Kingdom and for the time being listed in Article 397(2) of the Companies (Northern Ireland) Order 1986.”.

Section 27 Policyholders Protection Act 1975

In paragraph 14 of Schedule 1 to the Policyholders Protection Act 1975 (additional provisions with respect to the Policyholders Protection Board), for sub-paragraph (3) substitute–

(3) A person shall not be appointed as auditor by the Board under sub-paragraph (2) above unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 28 Theatres Trust Act 1976

In the Schedule to the Theatres Trust Act 1976 (appointment, constitution and functions of trustees), for the second paragraph of paragraph 14 substitute–

No person shall be appointed under this paragraph unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 29 Aircraft and Shipbuilding Industries Act 1977

In section 17 of the Aircraft and Shipbuilding Industries Act 1977 (accounts and audit), for subsection (8) substitute the following–

(8) A person shall not be appointed under subsection (7) above unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 30 Insurance Brokers (Registration) Act 1977

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(1) The Insurance Brokers (Registration) Act 1977 shall be amended as follows.

(2) In section 11 (requirements for carrying on business)–

(a) in subsection (4), delete the reference to subsection 6 and for the words from “if he is a member” to the words “Companies Act 1985” substitute the words “if he is eligible for appointments as a company auditor under section 25 of the Companies Act 1989”;

(b) In subsection (5), for paragraph (b) substitute

(b) in relation to an enrolled body corporate, if he is not eligible for appointment as auditor of the enrolled body corporate by virtue of section 27 of the Companies Act 1989.

(c) omit subsection (6).

(3) In section 25 (Accounts of Council), for subsection (2) substitute–

(2) The Council shall appoint an auditor to the Council who shall be a person eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(4) In subsection (1) of section 29 (interpretation) omit the definition of “recognised body of accountants”.

Section 31 Sheffield Assay Office Order 1978

In article 10 of the Sheffield Assay Office Order 1978 (accounts, financial year and audit)–

(a) for the words from “qualified to be appointed” to the end substitute “appointed as auditor under this article unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”; and

(b) for paragraph (4) substitute–

(4) Neither the auditor nor any partner in or director or officer of the auditor shall be capable of being a guardian or member of the Executive Committee and none of the following shall be capable of being the auditor–

(a) a guardian or member of the Executive Committee;

(b) any firm or any partner in a firm of which a guardian or member of that Committee is a partner; and

(c) any body corporate of which a guardian or member of that Committee is a director or officer or any fellow director or officer of such a body corporate.

Section 32 Nurses, Midwives and Health Visitors Act 1979

In the Nursers, Midwives and Health Visitors Act 1979–

(a) In subsection (2) of section 20 (accounts of Central Council and National Boards) delete “(qualified in accordance with Schedule 4)”;

(b) after subsection (2) of section 20 insert–

(2A) A person shall not be appointed as auditor under subsection (2) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(c) Schedule 4 shall cease to have effect except insofar as it applies in Northern Ireland.

Section 33 Estate Agents Act 1979

In section 14 of the Estate Agents Act 1979 (keeping of client accounts), for subsections (6) and (7) substitute–

(6) Subject to subsection (7) below, “qualified auditor” in subsection (5)(a) above means a person who is–

(a) eligible for appointment as a company auditor under section 25 of the Companies Act 1989; or

(b) in Northern Ireland, is a member of one or more bodies recognised by the Department of Economic Development for Northern Ireland for the purposes of article 397(1)(a) of the Companies (Northern Ireland) Order 1986 or is for the time being recognised by that Department under paragraphs (5), (6) or (7) of article 397 of that Order.

(7) A person is not a qualified auditor for the purposes of subsection (5)(a) above if, in the case of a client account maintained by a company, he is ineligible for appointment as auditor to the company by virtue of Part II of the Companies Act 1989.

Section 34 Crown Agents Act 1979

In section 22 of the Crown Agents Act 1979 (accounts and audit), for subsection 6 substitute–

(6) A person shall not be appointed auditor under subsection (5) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 35 Edinburgh Assay Office Order 1979

In article 12 of the Edinburgh Assay Office Order 1979 (accounts, financial year and audit)–

(a) in paragraph (3) for the words from “shall be qualified to be appointed” to the end substitute “shall be appointed auditor under this article unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”; and

(b) For paragraph (4) substitute–

(4) Neither the auditor nor any partner in or director or officer of the auditor shall be capable of being a member or warden and none of the following shall be capable of being the auditor–

(a) a member or warden;

(b) any firm, or any partner in a firm of which a member or warden is a partner; and

(c) any body corporate of which a member or warden is a director or officer of any fellow director or officer of such a body corporate.

Section 36 Education (Scotland Act 1980

In section 111 of the Education (Scotland) Act 1980 (accounts and audit of educational endownments), in subsection (3) for the words from “and no person shall be eligible” to the end substitute “and no person shall be appointed auditor as aforesaid unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 37 Local Government, Planning and Land Act 1980

In Schedule 31 to the Local Government, Planning and Land Act 1980 (urban development corporations), in paragraph 11 (audit)–

(a) for sub-paragraph (2) substitute–

(2) A person shall not be appointed under sub-paragraph (1) unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

(b) in sub-paragraph (3)–

(i) add “; or” at the end of paragraph (a); and

(ii) for paragraph (c) substitute–

(c) a body corporate of which a member, officer or servant of the corporation is a director or officer.

Section 38 English Industrial Estates Corporation Act 1981

In section 7 of the English Industrial Estates Corporation Act 1981 (accounts and reports of the Corporation), for subsection (3) substitute–

(3) No person shall be appointed under subsection (2) above unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 39 Licensing (Alcohol Education and Research) Act 1981

In section 10 of the Licensing (Alcohol Education and Research) Act 1981 (accounts and audit), for subsection (2) substitute–

(2) A person is qualified to audit the accounts of the liquidator or council if, and only if, he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 40 Fisheries Act 1981

In section 11 of the Fisheries Act 1981 (accounts and audit), for subsection (6) substitute–

(6) No person shall be qualified to the appointed auditor under this section unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 41 New Towns Act 1981

In section 68 of the New Towns Act 1981 (audit of accounts of Commission for New Towns and of development corporations), for subsection (2) substitute–

(2) A person shall not be so appointed auditor unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.

Section 42 Broadcasting Act 1981

In section 42(2A) of the Broadcasting Act 1981 (accounts, audit and annual reports), for the words from “shall not be qualified” to the end substitute “shall not be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”-

Section 43 Agricultural Training Board Act 1982

In section 8 of the Agricultural Training Board Act 1982 (reports and accounts), in subsection (2) for the words from “shall be qualified” to the end substitute “shall be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 44 Industrial Training Act 1982

In section 8 of the Industrial Training Act 1982 (reports and accounts), in subsection (2) for the words from “shall be qualified” to the end substitute “shall be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 45 Civil Aviation Action 1982

In section 15 of the Civil Aviation Act 1982 (accounts and audit), in subsection (2)(a) for the words from “shall not be qualified” to the end substitute “shall not be so appointed unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.”.

Section 46 Duchy of Cornwall Management Act 1982

In section 9 of the Duchy of Cornwall Management Act 1982 (accounts and audit), for subsection (2) substitute–

(2) A person shall not be appointed as auditor of the Duchy unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.