[494ZA The maximum engagement period]
[494ZA The maximum engagement period]
Companies Act 2006 | Legislation

[(1)     Where a person is auditor of a company for consecutive financial years, the maximum engagement period of the person as auditor of the company—

(a)     begins with the first of those years (see the appropriate entry in the first column of the following Table), and

(b)     ends with the financial year specified in the corresponding entry in the second column of the Table:

First financial year of the maximum engagement period Last financial year of the maximum engagement period A financial year of the company beginning before 17 June 1994 The last financial year of the company to begin before 17 June 2020. A financial year of the company beginning—(a) on or after 17 June 1994, and(b) before 17 June 2003 The last financial year of the company to begin before 17 June 2023. A financial year of the company beginning—(a) on or after 17 June 2003, and(b) before 17 June 2016 No qualifying selection procedure Where neither the first financial year of the maximum engagement period nor any subsequent financial year is one for which the auditor has been appointed following the carrying out of a qualifying selection procedure, the later of—(a) the last financial year of the company to begin before 17 June 2016, and(b) the last financial year of the company to begin within the period of 10 years beginning with the first day of the first financial year of the maximum engagement period.No qualifying selection procedure within 10 yearsWhere the last day of the last financial year of the company to begin within the period of 10 years beginning with the first day of the last financial year of the company for which the auditor was appointed following a qualifying selection procedure is before 17 June 2016—(a) the last financial year of the company to begin before 17 June 2016, unless(b) the auditor is appointed following a qualifying selection procedure for the first financial year of the company to begin on or after 17 June 2016, in which case it is the last financial year of the company to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period.Qualifying selection procedure within 10 yearsIn any other case, the earlier of—(a) the last financial year of the company to begin within the period of 10 years beginning with the first day of the last financial year of the company for which the auditor was appointed following a qualifying selection procedure, and(b) the last financial year of the company to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period. A financial year of the company beginning on or after 17 June 2016 The earlier of—(a) the last financial year of the company to begin within the period of 10 years beginning with the first day of the last financial year of the company for which the auditor was appointed following a qualifying selection procedure, and(b) the last financial year of the company to begin within the period of 20 years beginning with the first day of the first financial year of the maximum engagement period.

(2)     Where the first financial year of the maximum engagement period begins on or after 17 June 2003, the maximum engagement period may be extended by a period of no more than 2 years with the approval of the competent authority.

Popular documents