COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 144 Obligation to lay group accounts before holding company.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 144

Obligation to lay group accounts before holding company.

144.[(1) Where at the end of its financial year a company has subsidiaries,
accounts or statements (in this Act referred to as "group accounts") dealing
as hereinafter mentioned with the state of affairs and profit or loss of
the company and the subsidiaries shall, subject to sub-section (2), be laid
before the company in general meeting when the company's own balance sheet and
profit and loss account are so laid.]

(2) Subject to sub-section (3), but notwithstanding anything in sub-section
(1)

(a)group accounts shall not be required where the company is at the end of its
financial year the wholly-owned subsidiary of another body corporate
incorporated in Northern Ireland; and

(b)group accounts need not deal with a subsidiary of the company if
the company's directors are of opinion that

(i)it is impracticable, or would be of no real value to members of
the company, in view of the insignificant amounts involved, or would involve
expense or delay out of proportion to the value to members of the company; or

(ii)the result would be misleading, or harmful to the business of the company
or any of its subsidiaries; or

<(iii)the business of the holding company and that of the subsidiary are so different that they cannot reasonably be treated as a single undertaking;


(b)and, if the directors are of such an opinion about each of the company's
subsidiaries, group accounts shall not be required.

(3) The approval of the Ministry shall be required for not dealing in
group accounts with a subsidiary on the ground that the result would be
harmful or on the ground of the difference between the business of the
holding company and that of the subsidiary.

[(4) If any person being a director of a company fails to take all reasonable
steps to secure compliance as respects the company with the provisions of this
section, he shall, in respect of each offence, be liable on summary conviction
to imprisonment for a term not exceeding six months or to a fine not exceeding
two hundred pounds, so, however, that

(a)in any proceedings against a person in respect of an offence under this
section, it shall be a defence to prove that he had reasonable ground to
believe and did believe that a competent and reliable person was charged with
the duty of seeing that the provisions of this section were complied with and
was in a position to discharge that duty; and

(b)a person shall not be sentenced to imprisonment for an offence under this
section unless, in the opinion of the court dealing with the case, the offence
was committed wilfully.]

(5) For the purposes of this section a body corporate shall be deemed to be
the wholly-owned subsidiary of another if it has no members except that other
and that other's wholly-owned subsidiaries and its or their nominees.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 144