489. Company's duties in relation to statement

(1) This section applies where the statement deposited under section 488 (statement by auditor to be deposited with company) states the circumstances connected with the auditor's ceasing to hold office.
(2) The company must within 14 days of the deposit of the statement either—
(a) send a copy of it to every person who under section 405 (duty to circulate copies of annual accounts and reports) is entitled to be sent copies of the accounts, or
(b) apply to the Court.
(3) If it applies to the Court, the company must notify the auditor of the application.
(4) If the Court is satisfied that the auditor is using the provisions of section 488 (statement by auditor to be deposited with company) to secure needless publicity for defamatory matter—
(a) it shall direct that copies of the statement need not be sent out, and
(b) it may further order the company's costs on the application to be paid in whole or in part by the auditor, even if he is not a party to the application.
The company must within 14 days of the Court's decision send to the persons mentioned in subsection (2)(a) a statement setting out the effect of the order.
(5) If no such direction is made the company must send copies of the statement to the persons mentioned in subsection (2)(a) within 14 days of the Court's decision or, as the case may be, of the discontinuance of the proceedings.
(6) In the event of default in complying with this section a contravention of these Regulations is committed by every officer of the company who is in default.
(7) A person does not commit the contravention referred to in subsection (6) if he shows that he took all reasonable steps and exercised all due diligence to avoid the commission of the contravention.
(8) A person who commits the contravention referred to in subsection (6) shall be liable to a level 3 fine.