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Changes to Companies Act 2006 affecting all Company Accounts from 1 July 2015

CHANGES TO COMPANIES ACT 2006 AFFECTING ALL COMPANY ACCOUNTS FROM 1 JULY 2015

Section 409 Companies Act (the ‘Act’) requires that the notes to a company’s accounts include information on its related undertakings. Prior to 1 July 2015, section 410 of the Act allowed companies to limit these disclosures in their accounts to principal subsidiaries if, in the opinion of the directors, the information to be included would be of excessive length. Companies were required instead, to annex a full list of subsidiaries to their next annual return filed at Companies House.

Section 410 of the Act was repealed on 1 July 2015. As a result, UK companies can no longer take advantage of its provisions and are therefore not permitted to limit the information disclosed in their accounts in relation to their related undertakings. Nor is it possible to annex this information in the company’s next annual return.

Companies House have stated that if a company does not include a full list of related undertakings in any set of accounts approved by the board of directors on or after 1 July 2015, an amended set of accounts will be required for submission.