Companies Act 1985

Both cases

9 The company's balance sheet shall contain a statement by the directors that—

(a) they rely on sections 247 to 249 of this Act as entitling them to deliver modified accounts, and

(b) they do so on the ground that the company is entitled to the benefit of those sections as a small or (as the case may be) a medium-sized company;

and the statement shall appear in the balance sheet immediately above the signatures of the directors.

10 (1) The accounts delivered shall be accompanied by a special report of the auditors stating that in their opinion—

(a) the directors are entitled to deliver modified accounts in respect of the financial year, as claimed in the directors' statement, and

(b) any accounts comprised in the documents delivered as modified accounts are properly prepared as such in accordance with this Schedule.

(2) A copy of the auditors' report under section 236 need not be delivered : but the full text of it shall be reproduced in the special report under this paragraph.

(3) If the directors propose to rely on sections 247 to 249 as entitling them to deliver modified accounts, it is the auditors' duty to provide them with a report stating whether in their opinion the directors are so entitled, and whether the documents to be delivered as modified accounts are properly prepared in accordance with this Act

11 Subject as above, where the directors rely on sections 247 to 249 in delivering any documents, and—

(a) the company is entitled to the benefit of those sections on the ground claimed by the directors in their statement under paragraph 9, and

(b) the accounts comprised in the documents delivered as modified accounts are properly prepared in accordance with this Schedule,

then section 241(3) has effect as if any document which by virtue of this Part of this Schedule is included in or omitted from the documents delivered as modified accounts were (or, as the case may be, were not) required by this Act to be comprised in the company's accounts in respect of the financial year.