(1) Subject to subsection (2), the following selection procedures apply, for financial years commencing on or after 17 June 2016, to the appointment of a statutory auditor or audit firm to a public-interest entity:
(a) the audit committee shall prepare a recommendation for the directors of the entity by carrying out the selection procedure specified in Article 16(3) of Regulation (EU) No 537/2014;
(b) the audit committee shall submit a recommendation to the directors of the entity for the appointment of statutory auditors or audit firms;
(c) the recommendation -
(i) shall be justified and contain at least 2 choices for the audit engagement and shall express a duly justified preference for one of them, and
(ii) shall state (if such be the case) that the recommendation is free from influence by a third party and that, on and from 17 June 2017, no clause of the kind referred to in section 380(6) has been imposed upon it;
(d) the proposal by the directors to the general meeting of sharehol
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