(1) This section applies to a company unless -
(a) it is exempt for the financial year in question from the requirements of Part 16 as to audit of accounts, and
(b) the directors take advantage of that exemption.
(2) The directors' report must contain a statement to the effect that, in the case of each of the persons who are directors at the time the report is approved -
(a) so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
(b) he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
(3) "Relevant audit information" means information needed by the company's auditor in connection with preparing his report.
(4) A director is regarded as having taken all the steps that he ought to have taken as a director in order to do the things mentioned in subsection (2)(b) if he has -
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