C4C5C6C7Part 15Accounts and reports

Annotations:
Modifications etc. (not altering text)
C5

Pt. 15 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

C6

Pt. 15 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 16 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

C3C9 Chapter 4Annual accounts

Annotations:
Modifications etc. (not altering text)
C9

Pt. 15 Ch. 4 applied (with modifications) (31.7.2015) by The European Grouping of Territorial Cooperation Regulations 2015 (S.I. 2015/1493), regs. 1(2), 7(1) (with reg. 11)

Group accounts: other companies

C1C2C8400Exemption for company included in EEA group accounts of larger group

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 an EEA State, in the following cases—

a

where the company is a wholly-owned subsidiary of that parent undertaking;

F1b

where that parent undertaking holds 90% or more of the allotted shares in the company and the remaining shareholders have approved the exemption;

c

where that parent undertaking holds more than 50% (but less than 90%) of the allotted shares in the company and notice requesting the preparation of group accounts has not been served on the company by the shareholders holding in aggregate at least 5% of the allotted shares in the company.

Such notice must be served at least six months before the end of the financial year to which it relates.

2

Exemption is conditional upon compliance with all of the following conditions—

a

the company must be 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 an EEA State;

b

those accounts must be drawn up and audited, and that parent undertaking's annual report must be drawn up, according to that law—

F2i

in accordance with the provisions of Directive 2013/34/ EU of the European Parliament and of the Council on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, or

ii

in accordance with international accounting standards;

c

the company must disclose in F3the notes to its individual accounts that it is exempt from the obligation to prepare and deliver group accounts;

d

the company must state in its individual accounts the name of the parent undertaking that draws up the group accounts referred to above and—

F4i

the address of the undertaking’s registered office (whether in or outside the United Kingdom), or

ii

if it is unincorporated, the address of its principal place of business;

e

the company must deliver to the registrar, within the period for filing its accounts and reports for the financial year in question, copies of—

i

those group accounts, and

ii

the parent undertaking's annual report,

together with the auditor's report on them;

f

any requirement of Part 35 of this Act as to the delivery to the registrar of a certified translation into English must be met in relation to any document comprised in the accounts and reports delivered in accordance with paragraph (e).

3

For the purposes of subsection (1)(b) F5and (c) 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.

4

The exemption does not apply to a company F6which is a traded company.

5

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 this section whether the company is a wholly-owned subsidiary.

F76

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