Clause 21

by deleting paragraphs (e), (f) and (g) of subsection (1) and substituting the following paragraphs:“(e)has, while being a director of an accounting corporation or a partner of an accounting LLP, failed to take reasonable steps to prevent the accounting corporation or accounting LLP from acting in a manner which would warrant the Oversight Committee imposing any order on the accounting corporation or accounting LLP under section 53(2);

has rendered public accountancy services as, or purporting to be —

a director of a company which was not an accounting corporation; or

a partner of a limited liability partnership which was not an accounting LLP,when the services were rendered;

has, while being a director of an accounting corporation or partner of an accounting LLP, practised public accountancy at such a time when the accounting corporation or accounting LLP was not covered by any professional indemnity insurance or was not so covered to the extent required by section 28; or”;

by deleting subsection (10) and substituting the following subsection:“(10) For the purposes of subsection (1)(e), a public accountant shall be deemed to have taken reasonable steps to prevent the doing of any act by any accounting corporation or accounting LLP if he satisfies the Disciplinary Committee that the act was done without his knowledge and that —

he was not in a position to influence the conduct of the accounting corporation or accounting LLP in relation to its action; or

he, being a director of the accounting corporation or a partner of the accounting LLP, exercised all due diligence to prevent the accounting corporation or accounting LLP from so acting.”; and

by inserting, immediately after the words “an accounting corporation” in subsection (11), the words “or an accounting LLP”.