Company Law Reform Bill [HL]

moved Amendment No. 379:"Leave out Clause 522 and insert the following new Clause—" ““LIABILITY LIMITATION AGREEMENTS (1)   A ““liability limitation agreement”” is an agreement that purports to limit the amount of a liability owed to a company by its auditor in respect of any negligence, default, breach of duty or breach of trust, occurring in the course of the audit of accounts, of which the auditor may be guilty in relation to the company. (2)   Section 520 (general voidness of provisions protecting auditors from liability) does not affect the validity of a liability limitation agreement that— (a)   complies with section (Terms of liability limitation agreement) (terms of liability limitation agreement) and of any regulations under that section, and (b)   is authorised by the members of the company (see section (Authorisation of agreement by members of the company)). (3)   Such an agreement— (a)   is effective to the extent provided by section 524, and (b)   is not subject— (i)   in England and Wales or Northern Ireland, to section 2(2) or 3(2)(a) of the Unfair Contract Terms Act 1977 (c. 50); (ii)   in Scotland, to section 16(1)(b) or 17(1)(a) of that Act.”” On Question, amendment agreed to.