Publication of Financial Statements

Part 6 – Financial Statements, Annual Return and Audit

Every member of the company must be sent a copy of the statutory financial statements, the directors’ report that relates to it, and the statutory auditor’s report.

This is true whether or not the member is entitled to receive notices of the company’s general meetings. The same applies to every holder of debentures of the company.

There is a time limit for this. The documents mentioned above must be sent to the relevant parties not less than 21 days before the date of the meeting.

Practitioners will recognise in this section (Section 338) the old Section 159 of the 1963 Act.

If any of the above parties demand any of the above documents, they must be provided with them by the company. This is new, and is set out in Section 339 (while new, the section draws together a number of existing requirements from the Management and Administration part of the 1963 Act).

The requirements in relation to the publication of financial statements are set out here (Section 340). This section comes from Section 19 of the C(A)A 1986.

The obligation of the directors to lay before the general meeting copies of the statutory financial statements, their report, the statutory auditors’ report on those two documents, is set out in Section 341.