(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 has 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 -
(a) the audit committee of the company must make a recommendation to the directors in connection with the appointment, and
(b) the directors must propose an auditor or auditors for appointment.
(4) Before the audit committee makes a recommendation or the directors make a proposal under subsection (3), the committee must carry out a selection procedure in accordance with Article 16(3) of the Audit Regulation, unless the company is -
(a) a small or medium sized enterprise within the meaning in Article 2(1)(f) of Directive 2003/71/EC; or
(b) a company with reduced market capitalisation within the meaning in Article 2(
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