415Duty to prepare directors' reportU.K.
(1)The directors of a company must prepare a directors' report for each financial year of the company.
(2)For a financial year in which—
(a)the company is a parent company, and
(b)the directors of the company prepare group accounts,
the directors' report must be a consolidated report (a “group directors' report”) relating to the undertakings included in the consolidation.
(3)A group directors' report may, where appropriate, give greater emphasis to the matters that are significant to the undertakings included in the consolidation, taken as a whole.
(4)In the case of failure to comply with the requirement to prepare a directors' report, an offence is committed by every person who—
(a)was a director of the company immediately before the end of the period for filing accounts and reports for the financial year in question, and
(b)failed to take all reasonable steps for securing compliance with that requirement.
(5)A person guilty of an offence under this section is liable—
(a)on conviction on indictment, to a fine;
(b)on summary conviction, to a fine not exceeding the statutory maximum.
Modifications etc. (not altering text)
C1Ss. 380-416 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 10 (with transitional provisions and savings in regs. 7, 9, Sch. 2)