Regulation 15

4. After section 485 (appointment of auditors of private company: general) insert -

"485A Appointment of auditors of private company: additional requirements for public interest entities with audit committees

(1) This section applies to the appointment under section 485(4) of an auditor or auditors of a private 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, including the following information in the proposal -

(i) the recommendation made by the audit committee in connection with the appointment, or

(ii) if the directors' proposal departs from the preference of the audit committee, the reasons for not following the recommendation.