If at any time during his term of office a statutory auditor becomes prohibited from acting by section 1214(1), he must immediately—
resign his office (with immediate effect), and
give notice in writing to the audited person that he has resigned by reason of his lack of independence.
A person is guilty of an offence if—
he acts as a statutory auditor in contravention of section 1214(1), or
he fails to give the notice mentioned in paragraph (b) of subsection (1) in accordance with that subsection.
A person guilty of an offence under subsection (2) is liable—
on conviction on indictment, to a fine;
on summary conviction, to a fine not exceeding the statutory maximum.
A person is guilty of an offence if—
he has been convicted of an offence under subsection (2)(a) or this subsection, and
he continues to act as a statutory auditor in contravention of section 1214(1) after the conviction.
A person is guilty of an offence if—
he has been convicted of an offence under subsection (2)(b) or this subsection, and
after the conviction, he continues to fail to give the notice mentioned in subsection (1)(b).
A person guilty of an offence under subsection (4) or (5) is liable—
on conviction on indictment, to a fine;
on summary conviction, to a fine not exceeding one-tenth of the statutory maximumone-tenth of the greater of £5,000 or the amount corresponding to level 4 on the standard scale for summary offences for each day on which the act or the failure continues.
In proceedings against a person for an offence under this section it is a defence for him to show that he did not know and had no reason to believe that he was, or had become, prohibited from acting as statutory auditor of the audited person by section 1214(1).