With effect from 6 April 2008, provided that the company’s shareholders consent, auditors will be able to sign an agreement with the company limiting their liability. Liability limitation agreements (LLAs) are subject to annual shareholder approval and to the limit being "fair and reasonable" in the circumstances. Until the courts give guidance on what is a "fair and reasonable" cap, it will not be possible to know whether an LLA will be effective.
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Limiting auditors’ liability
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