Technical Update: Company Law Reform Bill

These follow the consultation on the White Paper issued by the Government in March 2005 in response to the audit profession's calls to be permitted to limit their liability, in the hope of preventing a further collapse like Arthur Andersen.
The draft clauses allow auditors to agree with companies' limits on the auditor's liability. They do not, contrary to previous indications, dictate how those limits should be set, and they give considerable freedom to auditors and companies in what they agree.