In Article 16 (appointment of statutory auditors or audit firms) -

(a) in paragraph 1 -

(i) in the first subparagraph -

(aa) for "Article 37(1) of Directive 2006/43/EC" substitute "the provisions";

(bb) omit "or audit firms";

(cc) for "paragraphs 2 to 5" substitute "paragraph 3";

(dd) omit "but may be subject to paragraph 7";

(ii) in the second subparagraph -

(aa) for "Article 37(2) of Directive 2006/43/EC applies" substitute "the provisions for the appointment of statutory auditors by public interest entities do not apply";

(bb) for "the alternative systems" substitute "applicable alternative systems";

(cc) omit "referred to in that Article";

(dd) for "paragraphs 2 to 5" substitute "paragraph 3";

(b) in paragraph 3, in the first subparagraph -

(i) for "shall" substitute ", or the proposal of the management body where required by the provisions for the appointment of statutory auditors by public interest entities, must";