Company’s duties in relation to statement

(1) This section applies in respect of a statement lodged under section 748 that states the circumstances in which an auditor of a company ceased to hold office.
(2) Within fourteen days after the statement was lodged with it, the company shall either—
(a) send a copy of it to every person who, in accordance with section 662 is entitled to be sent copies of the company's financial statement; or (b) apply to the Court for an order under subsection (4).
(3) The auditor is entitled to be served with a copy of such an application and to be heard at the hearing of the application by the Court.
(4) On the hearing of an application made under subsection (2)(b), the Court, if satisfied that the representations of the auditor contain defamatory matter-
(a) shall make an order directing that copies of the statement need not be sent out; and
(b) may further order the company's costs on the application to be paid in whole or in part by the auditor, even if not a party to the application.
(5) If the Court has made an order under subsection (4)(a), the company shall, within fourteen days after the date on which the order was made, send to the persons referred to in subsection (2)(a) a statement setting out the effect of the order.
(6) If no such order is made the company shall send copies of the statement to the persons referred to in subsection (2)(a) within fourteen days after the date of the Court's decision or, if the proceedings are discontinued, the date on which the proceedings are discontinued.
(7) If the company fails to comply with a requirement of this section, the company, and each officer of the company who is in default commit an offence and on conviction are each liable to a fine not exceeding one million shillings.