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497. Authorisation of agreement by members of the LLP

Past version: effective from 21/10/2015 - 20/10/2015
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(1) A liability limitation agreement is authorised by the members of the LLP if it has been authorised under this section and that authorisation has not been withdrawn.
(2) A liability limitation agreement between an LLP and its auditor may be authorised —
(a) by the members of the LLP passing a resolution, before it enters into the agreement, waiving the need for approval,
(b) by the members of the LLP passing a resolution, before it enters into the agreement, approving the agreement's principal terms, or
(c) by the members of the LLP passing a resolution, after it enters into the agreement, approving the agreement.
(3) The "principal terms" of an agreement are terms specifying, or relevant to the determination of —
(a) the kind (or kinds) of acts or omissions covered,
(b) the financial year to which the agreement relates, or
(c) the limit to which the auditor's liability is subject.
(4) Authorisation under this section may be withdrawn by the members of the LLP passing a resolution to that effect —
(a) at any time before the company enters into the agreement, or
(b) if the LLP has already entered into the agreement, before the beginning of the financial year to which the agreement relates.
Subsection (4)(b) has effect notwithstanding anything in the agreement.