Co-operative and Community Benefit Societies Act 2014

92 Persons ineligible for appointment as auditors etc

(1) This section applies to an appointment by a registered society of a person—

(a) as auditor of the society,

(b) for the purposes of making a report of a kind mentioned in row 5 or 6 of the table in section 82 (report on interim revenue account or balance sheet), or

(c) under section 85 (duty to obtain report in certain cases where section 83 disapplied).

(2) None of the following may be appointed—

(a) an officer or employee of the society or any connected registered society;

(b) an employee, employer or partner of a person within paragraph (a);

(c) a person prohibited by section 1214 of the Companies Act 2006 (independence requirement) from acting as statutory auditor of a company that is a subsidiary of the society.

(3) For this purpose, a society is “connected with” another society if—

(a) one of them is a subsidiary of the other, or

(b) they are both subsidiaries of another registered society.

(4) An appointment made in contravention of this section is ineffective for the purposes of this Part.

(5) For the purposes of subsection (2), a society’s auditor is not to be regarded as an employee of the society (and the auditor is not an “officer” - see section 149).