Section 325 of the Act requires the directors of a company to prepare for each financial year a directors’ report detailing the matters set out below. All companies, regardless of type, are required to present a directors’ report which shall include certain prescribed matters depending on their size and whether such a matter is relevant to the company and necessary for a proper understanding of its performance and position.
The directors’ report is required to state certain items which are:
- The names of the persons who were, at any time during the financial year, directors of the company (applies only where accounting period commences on or after 1 June 2015);
- The principal activities of the company;
- The measures taken by the directors to ensure compliance with the requirements to the keeping of accounting records and the exact location of these records;
- The amount of any interim dividends paid during the year; and
- The amount, if any, that the directors recommend should be paid by way of final dividend.
In cases where it is deemed relevant in a particular financial year, the directors’ report shall state:
- Details of any important events occurring since the financial year end;
- An indication of any activities in the field of research and development;
- An indication of the existence of any branches outside the State and the country where each such branch is located; and
- Any political donations made that are required to be disclosed by the Electoral Act 1997.
Where material for an assessment of a company’s financial position and profit or loss, the directors’ report shall describe the use of financial instruments by the company and discuss in particular:
- The financial risk management objectives and policies of the company; and
- The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk.