495. 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 493 (general voidness of provisions protecting auditors from liability) does not affect the validity of a liability limitation agreement that—
(a) complies with section 496 (terms of liability limitation agreement) and of any rules made by the Board under that section, and
(b) is authorised by the members of the company (see section 497 (authorisation of agreement by members of the company)).
(3) Such an agreement is effective to the extent provided by section 498 (effect of liability limitation agreement).