Failure to re-appoint auditor: rights of auditor who is not re-appointed515

F11

If an LLP wishes to appoint a person as auditor in place of a person who is an auditor of the LLP and who is to cease to hold office at the end of a period for appointing auditors (the “outgoing auditor”), the LLP must give the outgoing auditor seven days’ notice; no person may be appointed as auditor in the absence of such notice.

But notice is not required under this subsection if the auditor is to cease to hold office by virtue of section 510, 511A or 516.

2

The outgoing auditor may, in response to receipt of a notice given under subsection (1), make representations in writing to the LLP (not exceeding a reasonable length) and request their notification to members of the LLP.

3

The LLP must upon receipt send a copy of the representations to every member.

4

Copies of the representations need not be sent out if, on the application either of the LLP or of any other person claiming to be aggrieved, the court is satisfied that the auditor is using the provisions of this section to secure needless publicity for defamatory matter. The court may order the LLP's costs (in Scotland, expenses) on the application to be paid in whole or in part by the auditor, notwithstanding that he is not a party to the application.

Resignation of auditor516

1

An auditor of an LLP may resign his office by F2sending a notice to that effect to the LLP.

2

F3Where the LLP is a public interest LLP, the notice is not effective unless it is accompanied by the statement required by section 519.

3

An effective notice of resignation operates to bring the auditor's term of office to an end as of the date on which the notice is F4received or on such later date as may be specified in it.

Notice to registrar of resignation of auditorF5517

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Rights of resigning auditor518

F61

This section applies where an auditor’s (A’s) notice of resignation is accompanied by a statement under section 519 except where—

a

the LLP is a non-public interest LLP, and

b

the statement includes a statement to the effect that A considers that none of the reasons for A’s ceasing to hold office, and no matters (if any) connected with A’s ceasing to hold office, need to be brought to the attention of members or creditors of the LLP (as required by section 519(2E)).

2

He may F7send with the notice F8an authenticated requisition calling on the designated members of the LLP forthwith duly to convene a meeting of the members of the LLP for the purpose of receiving and considering such explanation of the F9reasons for, and matters connected with, his resignation as he may wish to place before the meeting.

3

He may request the LLP to circulate to its members before the meeting convened on his requisition, a statement in writing (not exceeding a reasonable length) of the F10reasons for, and matters connected with, his resignation.

4

The LLP must (unless the statement is received too late for it to comply)—

a

in any notice of the meeting given to members of the LLP, state the fact of the statement having been made, and

b

send a copy of the statement to every member of the LLP to whom notice of the meeting is or has been sent.

5

The designated members must within 21 days from the date F11on which the LLP receives a requisition under this section proceed duly to convene a meeting for a day not more than 28 days after the date on which the notice convening the meeting is given.

6

If default is made in complying with subsection (5), every designated member who failed to take all reasonable steps to secure that a meeting was convened commits an offence.

7

A person guilty of an offence under this section is liable—

a

on conviction on indictment, to a fine;

b

on summary conviction to a fine not exceeding the statutory maximum.

8

If a copy of the statement mentioned above is not sent out as required because received too late or because of the LLP's default, the auditor may (without prejudice to his right to be heard orally) require that the statement be read out at the meeting.

9

Copies of a statement need not be sent out and the statement need not be read out at the meeting if, on the application either of the LLP or of any other person who claims to be aggrieved, the court is satisfied that the auditor is using the provisions of this section to secure needless publicity for defamatory matter. The court may order the LLP's costs (in Scotland, expenses) on such an application to be paid in whole or in part by the auditor, notwithstanding that he is not a party to the application.

10

An auditor who has resigned has, notwithstanding his resignation, the rights conferred by section 502(1) in relation to any such meeting of the LLP as is mentioned in subsection (3). In such a case the references in that section to matters concerning the auditor as auditor shall be construed as references to matters concerning him as a former auditor.