[F1Exemption for parent companies included in accounts of larger groupF6N.I.
236 .F2—(1) A company is exempt from the requirement to prepare group accounts if it is itself a subsidiary undertaking and its immediate parent undertaking is established under the law of[F3 an EEA state], in the following cases—
(a)where the company is a wholly‐owned subsidiary of that parent undertaking;
(b)where that parent undertaking holds more than 50 per cent. of the shares in the company and notice requesting the preparation of group accounts has not been served on the company by shareholders holding in aggregate—
(i)more than half of the remaining shares in the company, or
(ii)5 per cent. of the total shares in the company.
Such notice must be served not later than 6 months after the end of the financial year before that to which it relates.
(2) Exemption is conditional upon compliance with all of the following conditions—
(a)that the company is included in consolidated accounts for a larger group drawn up to the same date, or to an earlier date in the same financial year, by a parent undertaking established under the law of[F3 an EEA state];
(b)that those accounts are drawn up and audited, and that parent undertaking's annual report is drawn up, according to that law, in accordance with the provisions of the Seventh Directive (83/349/EEC)[F4 (where applicable as modified by the provisions of the Bank Accounts Directive (86/635/EEC))][F5 or the Insurance Accounts Directive (91/674/EEC)][F3 or in accordance with international accounting standards];
(c)that the company discloses in its individual accounts that it is exempt from the obligation to prepare and deliver group accounts;
(d)that the company states in its individual accounts the name of the parent undertaking which draws up the group accounts referred to above and—
(i)if it is incorporated outside Northern Ireland, the country in which it is incorporated, and
(ii)if it is unincorporated, the address of its principal place of business;
(e)that the company delivers to the registrar, within the period allowed for delivering its individual accounts, copies of those group accounts and of the parent undertaking's annual report, together with the auditors' report on them; and
(f)that if any document comprised in accounts and reports delivered in accordance with sub‐paragraph (e) is in a language other than English, there is annexed to the copy of that document delivered a translation of it into English, certified in the prescribed manner to be a correct translation.
(3) The exemption does not apply to a company any of whose securities areF3. . . [F3 admitted to trading on a regulated market of any EEA State within the meaning of Council Directive 93/22/EEC on investment services in the securities field].
(4) Shares held by directors of a company for the purpose of complying with any share qualification requirement shall be disregarded in determining for the purposes of paragraph (1)(a) whether the company is a wholly‐owned subsidiary.
(5) For the purposes of paragraph (1)(b) shares held by a wholly‐owned subsidiary of the parent undertaking, or held on behalf of the parent undertaking or a wholly‐owned subsidiary, shall be attributed to the parent undertaking.
(6) In paragraph (3) “securities” includes—
(a)shares and stock,
(b)debentures, including debenture stock, loan stock, bonds, certificates of deposit and other instruments creating or acknowledging indebtedness,
(c)warrants or other instruments entitling the holder to subscribe for securities falling within sub‐paragraph (a) or (b), and
(d)certificates or other instruments which confer—
(i)property rights in respect of a security falling within sub‐paragraph (a), (b) or (c),
(ii)any right to acquire, dispose of, underwrite or convert a security, being a right to which the holder would be entitled if he held any such security to which the certificate or other instrument relates, or
(iii)a contractual right (other than an option) to acquire any such security otherwise than by subscription.]
F6Order repealed (prosp.) by Companies Act 2006 (c. 46), ss. 1284(2), 1295, 1300(2), Sch. 16 and the repeal being partly in force, as to which see individual Articles (with savings (with adaptations) by Companies Act 2006 (Commencement No. 6, Saving and Commencement Nos. 3 and 5 (Amendment)) Order 2008 (S.I. 2008/674), arts. 2(3), {4}, Sch. 2) and subject to amendments (6.4.2008) by Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1)(b)(2), Sch. 1 paras. 135, 147, 148 {Sch. 2 Note 1} (with arts. 6, 11, 12) and subject to amendments (6.4.2008) by S.R. 2008/133, {regs. 2, 3}