Companies Act 2014 section 1512

Prohibition of contractual clauses restricting choice of auditors

Section 1512 extends the prohibition on contractual clauses that restrict an entity's free choice of statutory auditor, and requires public-interest entities to report any such clauses to the Supervisory Authority.

• The prohibition on contractual clauses that restrict auditor choice applies to all audited undertakings, whether or not they are companies
• Public-interest entities must report any such restrictive contractual clauses immediately and directly to the Supervisory Authority, together with the circumstances that gave rise to them
• The Supervisory Authority may share any such report with bodies including the Corporate Enforcement Authority, Revenue Commissioners, Workplace Relations Commission, Central Bank, or the entity's relevant regulator
• This provision ensures that no third party can contractually dictate or limit which auditor an entity may appoint