Companies Act

767. Effect of liability limitation agreement

Edition: 2024-12-27 · In force

767. Effect of liability limitation agreement

(1)A liability limitation agreement is not effective to limit the auditor’s liability to less than such amount as is fair and reasonable having regard to—

(a)the auditor's responsibilities under this Part;

(b)the nature and purpose of the auditor's contractual obligations to the company; and

(c)the professional standards expected of the auditor.

(2)A liability limitation agreement that purports to limit the auditor's liability to less than the amount specified in subsection (1) has effect as if it limited the liability to that amount.

(3)In determining what is fair and reasonable no account is to be taken of—

(a)matters arising after the loss or damage has been incurred; or

(b)matters (whenever arising) affecting the possibility of recovering compensation from other persons liable in respect of the same loss or damage.

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Source: Kenya Law