Section 489B | Appointment of auditors of public company: additional requirements for public interest entities without audit committees ^F1

(1)This section applies to the appointment under section 489(4) of an auditor or auditors of a public company—

(a)which is also a public interest entity; and

(b)which does not have an audit committee.

(2)But it does not apply to the appointment of an Auditor General as auditor or one of the auditors of the company.

(3)Before an appointment to which this section applies is made the directors must propose an auditor or auditors for appointment.

(4)Before the directors make a proposal under subsection (3), the directors must carry out a selection procedure in accordance with Article 16(3) of the Audit Regulation , from which their proposed auditor or auditors must be drawn, unless the company is—^F2

(a)a small or medium sized enterprise within the meaning in Article 2(1)(f) of Directive 2003/71/EU ; or

(b)a company with reduced market capitalisation within the meaning in Article 2(1)(t) of that Directive.

(5)Subsection (4) does not apply in relation to a proposal to re-appoint the company’s existing auditor or auditors.^F3