Companies Act

765. Terms of liability limitation agreement

Edition: 2024-12-27 · In force

765. Terms of liability limitation agreement

(1)A liability limitation agreement is not effective if it—

(a)purports to apply in respect of acts or omissions occurring in the course of the audit of financial statements for more than one financial year; and

(b)does not specify the financial year in relation to which it relates.

(2)The regulations may—

(a)require liability limitation agreements to contain specified provisions or provisions of a specified description; or

(b)prohibit such agreements from containing specified provisions or provisions of a specified description.

(3)Subject to this section, it does not matter how a liability limitation agreement is framed.

(4)The limit on the amount of the auditor's liability need not be an amount of money, or a formula, specified in the agreement.

(5)Regulations made for the purpose of this section may include provisions to prevent adverse effects on competition.

← Previous provision Next provision →

Source: Kenya Law