Directors duties Flashcards
What must a director do under S386(1) and S394
A company must keep adequate accounting records under s 386(1) of the CA 2006, otherwise
it commits an offence. It is the directors’ responsibility to ensure that full accounts are
produced for each financial year (CA 2006, s 394).
What must the accounts give under S396(2)?
a ‘true and fair view of the state of affairs of the company as at the
end of the financial year’ (CA 2006, s 396(2)). The directors must not approve the accounts
unless they are satisfied that they give a true and fair view of the assets, liabilities, financial
position, and profit and loss of the company (CA 2006, s 393(1)).
What sections proscribe the form and content of the accounts?
The form and content of company accounts are prescribed by ss 396–413 of the CA 2006, and
are also governed by standards set by the accountancy profession and contained in Financial
Reporting Standards (FRSs).
What must accompany the reports according to S415 and be circulated to every shareholder in accordance with S423(1)?
By s 415 of the CA 2006, every company must prepare a directors’ report for each financial
year to accompany the accounts. The accounts, directors’ report and, if required, auditors’
report (see 6.12.1 below) must be circulated to every shareholder in accordance with s 423(1)
of the CA 2006. This is the directors’ responsibility.
What should a directors report contain according to S417?
Section 417 of the CA 2006 requires the directors’ report to include a business review which
contains a balanced and comprehensive review of the development and performance of the
company’s business, the risk and uncertainties faced, and the position of the business at the
end of the financial year. This does not apply to ‘small’ companies.
What must be filed at companies house under S441
unless that company is a micro entity P123
Under s 441 of the CA 2006, companies must also file the accounts and directors’ report for
each financial year at Companies House.
What is the time limit for filing accounts
9 months from the end of the accounting ref period for a private company (442(2)
How often must a company submit a confirmation statement
Once every 12 months. Directors must do this within 14 days after confirmation date (date to which confirmaton statement made up) - S853A(1) and (3).
A companies first confirmation date is the anniversary of its incorporation. Failure to submit on time is a criminal wdedeqwoffence.
What form should the company use to submit a confirmation statement to CH?
CS01
