Duty to prepare individual accounts
Part 15 Accounts and reports
The directors of every company must prepare accounts for the company for each of its financial years [F321unless the company is exempt from that requirement under section 394AF321] .
Those accounts are referred to as the company's “individual accounts”.
In the Companies Acts “director” includes any person occupying the position of director, by whatever name called.
Defined in s.250 · see it in the full Act“company” means a company formed and registered under this Act, that is—
a company so formed and registered after the commencement of this Part, or
a company that immediately before the commencement of this Part—
was formed and registered under the Companies Act 1985 (c. 6) or the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)), or
was an existing company for the purposes of that Act or that Order,
(which is to be treated on commencement as if formed and registered under this Act).
(4) In this section and that Schedule “company” includes any body corporate.
Defined in s.1159(4) · see it in the full ActThe court treated the duty to prepare annual accounts as applicable because Solid Star was not exempt, and criticised the absence of reliable annual accounts and financial records. (see paras [32], [49]-[58])
Confirms the director’s responsibility for financial statements which give a true and fair view, as recorded in the Company’s accounts. The acknowledgment was relevant to assessing the failure to keep adequate records (see para [14]).
Cited in explaining directors’ statutory responsibilities concerning company accounts and the petitioner’s constructive knowledge of disclosed transactions (see para [163]).
What each judgment says about section 394 is in the case-law panel in the full Act.