(1) Part 16 of the Companies Act 2006 [2006 c. 46.] is amended as follows.

(2) In section 485A (appointment of auditors of private company: additional requirements for public interest entities with audit committees) [Section 485A was inserted by S.I. 2016/649.] -

(a) in subsection (3)(b), omit from ", including the following" to the end;

(b) in subsection (4), omit "or directors";

(c) in subsection (5)(a), at the end insert "drawn from those auditors who have participated in a selection procedure under subsection (4),";

(d) for subsections (6) to (8) substitute -

"(6) The directors must include in their proposal -

(a) the recommendation made by the audit committee in connection with the appointment, and

(b) if the proposal of the directors departs from the preference of the audit committee -

(i) a recommendation for a candidate or candidates for appointment drawn from those auditors who have participated in a selection procedure under subsection (4), and