{
  "url": "https://openlegislation.uk/local-audit-and-accountability-act-2014/schedule-1D/paragraph-2",
  "json_url": "https://openlegislation.uk/local-audit-and-accountability-act-2014/schedule-1D/paragraph-2.json",
  "legislation": "ukpga/2014/2",
  "legislation_title": "Local Audit and Accountability Act 2014",
  "legislation_url": "https://openlegislation.uk/local-audit-and-accountability-act-2014",
  "path": "schedule/1D/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": "Qualified control requirement for firms",
  "text": "(1) This paragraph applies for the purposes of paragraphs 4(1)(b) and 6(2)(a) of Schedule 1C.\n(2) A firm meets the qualified control requirement if—\n(a) a majority of the members of the firm are qualified persons, and\n(b) where the firm’s affairs are managed by a board of directors, committee or other management body—\n(i) a majority of that body are qualified persons, or\n(ii) if the body consists of two persons only, at least one of them is a qualified person.\n(3) The following provisions apply for the purposes of sub-paragraph (2).\n(4) An individual is a qualified person if the individual—\n(a) holds an appropriate qualification, or\n(b) falls within paragraph 4 or 5 of this Schedule.\n(5) A firm is a qualified person if the firm—\n(a) meets the criteria to become a registered local audit provider, or\n(b) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.\n(6) A majority of the members of a firm means—\n(a) where under the firm’s constitution matters are decided upon by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters;\n(b) in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.\n(7) A majority of the members of the management body of a firm means—\n(a) where matters are decided at meetings of the management body by the exercise of voting rights, members holding a majority of the rights to vote on all, or substantially all, matters at such meetings;\n(b) in any other case, members having such rights under the constitution of the firm as enable them to direct its overall policy or alter its constitution.\n(8) Paragraphs 5 to 11 of Schedule 7 to the Companies Act 2006 (rights to be taken into account and attribution of rights) apply for the purposes of sub-paragraphs (6) and (7) as they apply for the purposes of section 1162 of that Act.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Schs. 1B-1D inserted (29.4.2026 for specified purposes) by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(1)(6), Sch. 35"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2014/2/schedule/1D/paragraph/2",
    "retrieved_at": "2026-10-29T09:07:55.780103+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}