Part 15

Accounts and reports
Chapter 12

Supplementary provisions

Liability for false or misleading statements in reports

Liability for false or misleading statements in reports
463
1
The reports to which this section applies are—
a
the directors' report,
b
the directors' remuneration report, and
c
a summary financial statement so far as it is derived from either of those reports.
2
A director of a company is liable to compensate the company for any loss suffered by it as a result of—
a
any untrue or misleading statement in a report to which this section applies, or
b
the omission from a report to which this section applies of anything required to be included in it.
3
He is so liable only if—
a
he knew the statement to be untrue or misleading or was reckless as to whether it was untrue or misleading, or
b
he knew the omission to be dishonest concealment of a material fact.
4
No person shall be subject to any liability to a person other than the company resulting from reliance, by that person or another, on information in a report to which this section applies.
5
The reference in subsection (4) to a person being subject to a liability includes a reference to another person being entitled as against him to be granted any civil remedy or to rescind or repudiate an agreement.
6
This section does not affect—
a
liability for a civil penalty, or
b
liability for a criminal offence.