(1) A person is ineligible for appointment as auditor of a company if he or she is—
(a) an officer or employee of the company; or
(b) a partner or employee of such a person, or a partnership of which such a person is a partner,
or if he or she is ineligible by virtue of paragraph (a) or (b) for appointment as auditor of any associated undertaking of the company.
(2) A person is also ineligible for appointment as auditor of a company if there exists between him or her and any associate of his or her and the company or any associated undertaking a connection of any such description as may be specified by regulations made under section 535.
(3) In this section “associated undertaking” in relation to a company means—
(a) a parent undertaking or subsidiary undertaking of the company; or
(b) a subsidiary undertaking of any parent undertaking of the company.