459. Term of office of auditors of private company
(1) An auditor or auditors of a private company hold office in accordance with the terms of their appointment, subject to the requirements that—
(a) they do not take office until any previous auditor or auditors cease to hold office, and
(b) they cease to hold office at the end of the next period for appointing auditors unless re-appointed.
(2) Where no auditor has been appointed by the end of the next period for appointing auditors, any auditor in office immediately before that time is deemed to be re-appointed at that time, unless—
(a) he was appointed by the directors, or
(b) the company's articles require actual re-appointment, or
(c) the deemed re-appointment is prevented by the members under section 460 (prevention by members of deemed re-appointment of auditor), or
(d) the members have resolved that he should not be re-appointed, or
(e) the directors have resolved that no auditor or auditors should be appointed for the financial year in question.
(3) This is without prejudice to the provisions of this Part as to removal and resignation of auditors.
(4) No account shall be taken of any loss of the opportunity of deemed reappointment under this section in ascertaining the amount of any compensation or damages payable to an auditor on his ceasing to hold office for any reason.