An interesting development has been reported by Robert Bruce in the Financial Times: the likely reluctance of listed companies, during the forthcoming AGM season, to seek shareholder approval for auditor liability limitation agreements (ALLAs). Whilst Section 532 of the Companies Act (2006) renders void provisions exempting an auditor from liability, the Act provides an exception with regard to ALLAs in Sections 534 to 536. Shareholder authorisation is required. Bruce offers several suggestions for companies' lack of enthusiasm for ALLAs, including the fact that other issues are regarded as more important, and quotes the view of Deloitte's managing director for audit (Vince Niblett) that ALLAs are a "dead duck". Niblett is quoted as saying: "Audit committee chairmen will roll their eyes ... [they] are not going to want to have an argument at the AGM with a shareholder who has got the wrong end of the stick".
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